- SEC denied Coinbase exchange’s petition for transparent crypto rules and regulations.
- The commission’s chair, Gary Gensler cited ‘sufficient regulations in the market presently’ in a statement after the denial.
- Coinbase has committed to suing the SEC for abdicating its duty
Coinbase, the largest US-based cryptocurrency exchange, has been in a longstanding legal case against the US Securities and Exchange Commission (SEC). The exchange is among the industry players front-lining the push for crypto-specific regulations in the US. The stance came as firms in the country progressively suffered enforcement-focused regulation, compelling advocacy that the financial regulator Ultimately shift its focus.
Coinbase to sue SEC for abdication of duty
Coinbase Chief Legal Officer Paul Grewal has committed to approaching the Third Circuit court with intentions to challenge the SEC’s abdication of its duty.
Today the SEC denied Coinbase’s petition for rules for crypto. After 18 months of silence, we went to court to get the response the law requires. With appreciation for the Third Circuit, later today we’ll again seek its help by challenging the SEC’s abdication of its duty. ⬇️ pic.twitter.com/tFjiW53eF7
— paulgrewal.eth (@iampaulgrewal) December 15, 2023
It comes after the US SEC denied the exchange’s petition request for regulatory clarity. Among the reasons for the denial, according to a statement by SEC chair Gary Gensler, include:
- There being existing laws and regulations already, which apply to the crypto securities markets.
- That the SEC addresses the crypto securities markets through rulemaking as well.
- It is important to maintain Commission discretion regarding rulemaking priorities.
Gensler also reiterated the words of Gurbir Grewal, the Director of the SEC’s Division of Enforcement, who said, “You simply can’t ignore the rules because you don’t like them or because you’d prefer different ones: the consequences for the investing public are far too great.”
According to Gensler, the Congress creates securities laws to govern investments regardless of their form or name. In closing, he demonstrated support for the commission’s decision to deny the petition, articulating that the existing securities regime appropriately governs crypto asset securities.