Coinbase’s Chief Legal Officer Paul Grewal said today that the cryptocurrency exchange plans to take the SEC to court once again.—This time challenging the Commission’s denial of the company’s rulemaking petition.
The U.S. Securities and Exchange Commission (SEC) today denied Coinbase’s petition to clarify new cryptocurrency rules for the digital asset industry. The largest cryptocurrency exchange in the U.S. last year contaminated A petition asking the SEC to propose and adopt new rules on how to best regulate digitally native securities.
The SEC rushed to respond, leading Coinbase in April to: ask the court It pushes top regulators to provide answers.
But today the SEC finally rejected it. “Existing securities regimes adequately govern cryptocurrency securities,” said SEC Chairman Gary Gensler. said In a statement Friday.
Grewal then posted on X (formerly Twitter) explaining that the company plans to appeal the denial. He tweeted, “After 18 months of silence, we have gone to court to get the response the law requires. We are grateful to the 3rd Circuit and will seek its help again this afternoon by challenging the SEC’s waiver of duty.” revealed.
“No one who looks at our industry impartially thinks the law is clear or that there is nothing more to do,” Grewal added.
SEC and Coinbase were constantly in conflict About cryptocurrency regulation in the world’s largest economy
San Francisco-based Coinbase, where people can buy and sell bitcoin, Ethereum, and many other digital coins and tokens, the SEC says the rules are not clear enough. The SEC alleged in June that the cryptocurrency platform sold unregistered securities. hit A company that has filed massive lawsuits.
Arguments mainly focus on: one hot topic: Whether a particular cryptocurrency is a security. that much SEC Lawsuit Against Coinbase Several major coins are designated as unregistered securities, including: Cardano, polygonand Solana.
Gensler reiterated that most digital coins and tokens except the following: bitcoin—It is likely to fall into the unregistered securities category, which means exchanges that allow its trading may face legal action from regulators. Last month, the SEC targeted Kraken, another San Francisco-based cryptocurrency exchange. by lawsuit This essentially reflects dissatisfaction with Coinbase.
But not everyone at the SEC is happy with today’s decision. Commissioners Hester Peirce and Mark T. Uyeda said They said in a statement that they were “disappointed that the Commission is not hosting these important conversations” surrounding the securities component.
Commissioner Pierce previously criticized The SEC was criticized as “vague” and “uninterested in promoting innovation and competition in financial markets.”
“We appreciate that two commissioners disagreed with the denial and called for real dialogue,” Grewal said. said on twitter. “We must work together to create laws and rules that serve consumers and American innovation, not just defend lawsuits based on legal positions that change every month.”
Editor Guillermo Jimenez
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