US SEC Rejects Coinbase’s Petition for New Crypto Rules
US securities regulator, the Securities and Exchange Commission (SEC), has turned down a request from Coinbase Global, the country’s largest cryptocurrency exchange, for new regulations governing the digital asset sector.
A 3-2 vote by the five-member body saw the SEC refusing to propose fresh rules, disagreeing with Coinbase’s assertion that current regulations are unworkable for the crypto industry.
The rejection comes amid an ongoing conflict between the cryptocurrency sector and the top US markets regulator over the classification of digital assets. The SEC has sued several crypto firms, including Coinbase, for trading tokens it deems as securities.
In a show of support for the decision, SEC Chair Gary Gensler stated, “Existing laws and regulations apply to the crypto securities markets.”
At the heart of the dispute is Coinbase’s plea to the SEC to develop a tailored set of regulations for the crypto sector, arguing that existing US securities laws are inadequate.
However, the rejection of their petition by the SEC has left Coinbase representatives without an immediate response.
Republican SEC Commissioners Hester Peirce and Mark Uyeda expressed their disagreement with the decision, stating that addressing the issues raised by new technologies and innovations is a fundamental responsibility of a regulator.
This latest development underlines the deepening divide between the cryptocurrency industry and regulatory authorities, indicating a volatile road ahead for the digital asset sector.
While Coinbase continues to grapple with regulatory challenges, the future of the crypto market remains uncertain, and the rift between industry players and regulators shows no sign of narrowing.
As the standoff between the SEC and major crypto players intensifies, the industry’s fate hangs in the balance, and the outcome is likely to have far-reaching implications for the future of digital assets.
