The United States Securities and Exchange Commission (SEC) has denied a petition from Coinbase, a cryptocurrency exchange, for a rulemaking on transactions involving cryptocurrencies that are considered securities. The petition, which was filed in July 2022, requested rules to regulate securities offered and traded through digital methods.
SEC chair Gary Gensler announced the commission’s decision in a statement on December 15. He provided three reasons for denying Coinbase’s petition. Firstly, Gensler argued that existing laws and regulations already apply to the crypto securities markets, emphasizing that investors and issuers deserve the same protections as in traditional securities markets.
Gensler also stated that the timing was not appropriate for the rulemaking proposed by Coinbase, as the SEC is currently seeking comments on rules applicable to cryptocurrencies. Finally, Gensler highlighted that the agency has discretion in making rules and considers the timing and priorities of its regulatory agenda.
SEC commissioners Hester Peirce and Mark Uyeda released a joint statement criticizing the decision. While they acknowledged the latter two points made by Gensler, they believed that the issues raised in the petition should be addressed through public roundtables, concept releases, and requests for comment to gather input from various market participants and interested parties.
In response to the SEC’s decision, Coinbase filed a writ of mandamus in April, seeking a court order to require the SEC to respond to its petition. However, the SEC argued that Coinbase had no right to mandamus, and a rulemaking process could take years.
After further court filings, the SEC committed to responding to the Coinbase petition by December 15.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Mark Uyeda, Bill Hughes, Paul Grewal, Hester Peirce, Gary Gensler |
| Companies | United States Securities and Exchange Commission (SEC), Coinbase |
| Currencies | None |
| Securities | None |
