The Securities and Exchange Commission (SEC) has denied a rulemaking petition filed by Coinbase, a US-based crypto exchange. SEC Chair Gary Gensler supports the Commission’s decision, stating that existing laws and regulations already apply to the crypto securities markets. Gensler believes that the SEC addresses the crypto securities markets through rulemaking and emphasizes the importance of maintaining Commission discretion in setting its own rulemaking priorities.
Gensler’s comments come after recent enforcement actions and lawsuits against major crypto companies, including Coinbase, Binance, and Kraken, for alleged securities violations. Despite criticism from the industry regarding investor protection, Gensler argues that the existing laws are sufficient to safeguard investors and industry players.
Gensler asserts that most crypto assets are investment contracts and therefore subject to federal securities laws. Although a US court ruled that XRP was not a security, the SEC has listed multiple tokens as unregistered securities in subsequent lawsuits. Gensler disagrees with Coinbase’s assertion that now is the right time for a change to the rulemaking, stating that ongoing crypto-related cases and undertakings will inform whether a change to the regulatory regime is necessary.
In a separate statement, SEC Commissioners Hester Peirce and Mark Uyeda express their disagreement with the Commission’s decision. They believe that the petition raises important issues related to new technologies and that addressing these issues is a core responsibility of a responsible regulator.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Hester Peirce, Mark Uyeda, Gary Gensler |
| Companies | FTX, Binance, SEC, Kraken, Coinbase |
| Currencies | XRP |
| Securities | None |
