Monday, April 22, 2024

SEC denies Coinbase’s petition for brand new crypto asset guidelines

On Dec. 15, the U.S. Securities and Change Fee (SEC) denied a petition from the cryptocurrency change Coinbase, which had requested the event of recent guidelines for digital asset securities

In a response letter to Coinbase, the SEC stated it “concludes that the requested rulemaking is at the moment 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 way of its formal rulemaking course of. The change 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 stated it “disagrees with the Petition’s assertion that software of current securities statutes and rules 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 property fall underneath long-established investor safety guidelines, which he has repeatedly emphasised.

The company stated it at the moment 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 that will inform whether or not future rule adjustments 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 reminiscent of 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 drive a response. In April 2023, the change filed a lawsuit to compel the SEC to formally settle for or reject a petition initially submitted in July 2022. As of right this moment’s improvement, that petition has been answered.

The publish SEC denies Coinbase’s petition for brand new crypto asset guidelines appeared first on CryptoSlate.

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