On Dec. 15, the U.S. Securities and Change Fee (SEC) denied a petition from the cryptocurrency alternate Coinbase, which had requested the event of recent guidelines for digital asset securities
In a response letter to Coinbase, the SEC mentioned it “concludes that the requested rulemaking is at present unwarranted and denies the Petition.” The choice comes after almost 18 months of back-and-forth between Coinbase and the securities regulator.
Coinbase initially petitioned the SEC in July 2022, asking the company to create a “new regulatory framework” for crypto asset securities by means of its formal rulemaking course of. The alternate argued current SEC guidelines are “each incomplete and unsuitable” for digital asset securities that function on blockchain know-how.
‘Crypto asset securities’
However in its denial letter, the SEC mentioned it “disagrees with the Petition’s assertion that utility of current securities statutes and laws to crypto asset securities…is unworkable.
The rejection of a specialised crypto framework aligns with SEC Chair Gary Gensler‘s constant view that almost all crypto belongings fall below long-established investor safety guidelines, which he has repeatedly emphasised.
The company mentioned it at present has no plans to undertake the “discretionary rulemaking of considerable scope to create a ‘new regulatory framework’ for crypto asset securities,” as the unique petition. It cited different ongoing SEC initiatives which will inform whether or not future rule modifications are warranted, writing:
“Furthermore, the Fee has discretion to find out the timing and priorities of its regulatory agenda, together with with respect to discretionary rulemaking similar to that requested within the Petition.”
Earlier than the SEC outright rejected its rulemaking petition on Thursday, Coinbase had taken authorized motion in opposition to the securities regulator, aiming to pressure a response. In April 2023, the alternate filed a lawsuit to compel the SEC to formally settle for or reject a petition initially submitted in July 2022. As of at present’s improvement, that petition has been answered.
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