Coinbase, one of the largest cryptocurrency exchanges in the world, is not backing down from its quest to get clear and consistent rules for the crypto industry from the United States Securities and Exchange Commission (SEC). The Coinbase CEO, Brian Armstrong, announced on X (formerly Twitter) that Coinbase will appeal the SEC’s denial of its petition to create a new regulatory framework for crypto assets.
In July 2022, Coinbase pushed a court request. They wanted the SEC to create clear rules for the crypto business. The SEC brought up this request in their reply letter. However, they pointed out that Coinbase’s request might lead them to make some big and optional rule changes. They’d plan a new system to regulate crypto asset securities.
The SEC noticed that Coinbase’s plea didn’t include the text or content of a suggested regulation. This is a requirement as per the Commission’s practice rules, among other factors. Thus, the SEC didn’t accept the plea as they found it to be “not necessary” after following all obligatory procedures.
Coinbase Sees An Opportunity To Challenge The SEC
In his post, Armstrong stated that the rejection of this petition permits Coinbase to argue its case in a relevant jurisdiction. The Coinbase CEO noted that such an approach would move the industry nearer to attaining regulatory clarity. He posed a crucial issue; “why is SEC reluctant about remaining uncertainties in regulating the crypto space?”
Most recently, the SEC has instituted legal actions against numerous cryptocurrency firms, frequently focusing on an individual company or a handful of firms about regulation matters. However, many crypto practitioners have expressed concern and confusion over this regulation method because the SEC’s position remains vague.
The SEC, however, has not budged from its stance that the existing securities laws and regulations are sufficient and applicable to the crypto industry. The agency has also warned investors of the risks and challenges of investing in crypto assets, especially those that may be deemed as securities.
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