SEC Denies Coinbase’s Petition for Clear Crypto Regulation — Exchange Responds by Taking the Regulator to Court

The U.S. Securities and Exchange Commission (SEC) has rejected cryptocurrency speech Coinbase’s petition for regulatory clarity successful the crypto industry. SEC Chairman Gary Gensler backs his agency’s determination to contradict Coinbase’s petition. In response, Coinbase has pursued ineligible enactment against the securities regulator to situation this decision.

Coinbase Challenging SEC’s Decision successful Court

The U.S. Securities and Exchange Commission (SEC) has denied Coinbase Global’s Petition for Rulemaking. The crypto speech filed the petition successful July past year, seeking regulatory clarity, including “potential rules to place which integer assets are securities.” With nary effect from the SEC for 18 months, the crypto speech escalated the substance to court, prompting the bureau to respond with the denial connected Friday.

SEC Chair Gary Gensler issued a statement regarding the denial:

I was pleased to enactment the Commission’s determination for 3 reasons.

“First, existing laws and regulations use to the crypto securities markets. Second, the SEC addresses the crypto securities markets done rulemaking arsenic well. Third, it is important to support Commission discretion successful mounting its ain rulemaking priorities,” Gensler detailed.

Coinbase’s main ineligible officer, Paul Grewal, commented connected X: “Today the SEC denied Coinbase’s petition for rules for crypto. After 18 months of silence, we went to tribunal to get the effect the instrumentality requires. With appreciation for the Third Circuit, aboriginal contiguous we’ll again question its assistance by challenging the SEC’s abdication of its duty.”

In a follow-up post, Grewal revealed:

Promise made, committedness kept: we are present connected record with Third Circuit to situation the SEC’s arbitrary and capricious denial of our petition for crypto rulemaking. We again admit the court’s consideration.

The CEO of Coinbase, Brian Armstrong, wrote connected X: “We went to tribunal to situation the SEC’s refusal to make wide rules for the manufacture — and it worked (a tribunal compelled them to respond).” The enforcement added: “Now that they’ve formally responded (with a no!) we tin situation their effect successful court, which helps america get 1 measurement person to regulatory clarity. The question is wherefore doesn’t the SEC privation to clarify outstanding regulatory questions for the crypto industry?”

What bash you deliberation astir the SEC denying Coinbase’s petition seeking regulatory clarity for the crypto industry? Let america cognize successful the comments conception below.