Coinbase’s petition to rule-making for 2022 was denied by the US Securities and Exchange Commission on Friday.
The SEC is opposed to the petition’s argument that enforcing crypto regulations using current securities laws would be unconstitutional. “unworkable.”
“The Commission has discretion to determine the timing and priorities of its regulatory agenda, including with respect to discretionary rulemaking such as that requested in the Petition,” The SEC has written.
Gary Gensler is the Chair of the Commission and he has said that the Commission denies the allegations.
“I disagree with the petition’s assertion that now is the right time for the regulatory action it suggests. The Commission and its staff are currently pursuing numerous undertakings applicable to crypto asset securities and intermediaries, and the Commission’s assessment of whether and, if so, how to alter the existing regulatory regime may be informed by the results of these initiatives,” Gensler made a public statement.
He said that current legislation is not sufficient. “appropriately governs crypto asset securities.”
Coinbase’s request for rulemaking, as the SEC concluded, was denied. “unwarranted,” Which led to denial.
Coinbase submitted the rulemaking request in July 2022. “rules for securities just do not work for digital assets.”
“That hurdle is the fact that the securities rules simply do not work for digitally native instruments. They don’t work for tokenized debt. They don’t work for tokenized equity. They don’t work for crypto,” Faryar Shirzad, Coinbase’s Chief Policy Officer at the Time, wrote a post on his blog.
The petition was submitted a few months before the SEC sued the crypto exchange for operating as an unregistered trading platform while offering and selling unregistered security. They are currently engaged in legal proceedings.
Coinbase filed a lawsuit against the SEC in April this year to ask for regulatory clarification on cryptocurrency. Coinbase sued the SEC in April of this year to demand regulatory clarity on crypto.
Coinbase has not responded to our request for comment immediately.
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