Regulation
SEC rejects Coinbase’s petition for new cryptocurrency regulation
The United States Securities and Exchange Commission (SEC) has filed a countermotion against Coinbase’s regulatory petition for the cryptocurrency industry. In a brief presentation On May 10, the US regulator opposes Coinbase’s request saying there is no need to create a regulatory framework for cryptocurrencies in place of existing US securities laws.
Coinbase Regulatory Request Without Cause – SEC
In July 2021, Coinbase filed a request with the SEC asking it to conduct a rulemaking to establish a new set of regulations to guide the use and operations of cryptocurrencies. The SEC denied this request stated, among other reasons, that existing securities laws were sufficient for cryptocurrency markets.
This action prompted the American exchange to do so submit a petition with the United States Third Court of Appeals seeking an order compelling the Commission to undertake the requested rulemaking. In response, U.S. regulators turned to the U.S. court stating that no conditions currently exist that would require the formation of this new regulatory framework.
In making his case against Coinbase, the SEC said enforcement of existing security rules has been happening for decades and cannot be classified as “disruptive new authority.” The Commission also stated that it had never changed its position regarding its authority over cryptocurrencies, so creating new regulations was not necessary.
Furthermore, US regulators have argued that enforcement actions by cryptocurrency-related businesses do not require a regulatory process, but rather validate the effectiveness of current securities laws.
A statement from the brief read:
The fact that the Commission has initiated enforcement actions related to cryptocurrency security does not require the Commission to grant the rulemaking petition. Rather, in authorizing such enforcement actions, the Commission necessarily determined that the agency could assert claims under existing law. And the courts presiding over these cases have agreed to an objective judicial assessment that cannot be reconciled with Coinbase’s protests that such enforcement actions are an unauthorized “power grab” and an act of agency “self-aggrandizement.”
Beyond that, they countered Coinbase’s claim that it did not obtain a “reasonable explanation” for the denial of the regulatory petition as they provided the exchange with a “brief statement” on the matter.
Cryptocurrency market overview
In other news, the total cryptocurrency market earned by 0.19% in the last day and is now valued at $2.25 trillion. Most major assets posted only slight gains across the board, with Solana (SOL) and Binance Coin (BNB) leading the way with gains by a 1% margin. Meanwhile, Bitcoin, the market leader, continues to trade at $60,980.5, following a disappointing decline in which it fell by 3.71%.
BTC trading at $61,044 on the daily chart | Souce: BTCUSDT chart on Tradingview.com
Featured image by Forbes, chart by Tradingview