U.S. SEC Rejected Coinbase’s Petition For New Crypto Regulations

It has been just revealed the fact that the US SEC has rejected Coinbase’s petition for new crypto regulations. Check out the latest reports about this below.

The U.S. Securities and Exchange Commission (SEC) has rejected Coinbase’s request to establish a new regulatory structure for digital assets.

In a recent letter to Coinbase, the regulatory body stated that it did not agree with the cryptocurrency exchange’s claim that securities regulations do not apply to the digital asset industry.

“The Commission has carefully considered that recommendation, as well as the Petition and comment letters. After such consideration, and in the exercise of its broad discretion to set its rulemaking agenda, the Commission concludes that the requested rulemaking is currently unwarranted and denies the petition.

The Commission disagrees with the petition’s assertion that application of existing securities statutes and regulations to crypto asset securities, issuers of those securities, and intermediaries in the trading, settlement, and custody of those securities is unworkable.”

In his statement, SEC Chairman Gary Gensler agreed with the SEC’s assessment, stating that existing securities laws protect consumers sufficiently and there is no need for crypto-specific laws.

“I was pleased to support the Commission’s decision for three reasons. First, existing laws and regulations apply to the crypto securities markets. Second, the SEC addresses the crypto securities markets through rulemaking as well. Third, it is important to maintain Commission discretion in setting its own rulemaking priorities.

Existing laws and regulations already apply to the crypto securities markets. There is nothing about the crypto securities markets that suggests that investors and issuers are less deserving of the protections of our securities laws.”

Two of the SEC’s commissioners, namely Hester Peirce and Mark Uyeda, hold a different viewpoint from the SEC’s response. They believe that virtual currencies require a distinct set of regulations.

They said that they do not agree with the Commission’s decision. Also, they admitted the fact that the Commission has extensive discretion in determining the timing and priorities of its rule-making agenda.

However, they said that the petition raises concerns that are presented by new technologies and other innovations, and addressing these concerns is a fundamental part of being a responsible regulator.