SEC Rejects New Crypto Regulations, Leading Coinbase to Challenge Decision
With a 3-2 vote, the SEC dismissed the notion that existing rules are inadequate for cryptocurrencies, countering Coinbase's stance. The exchange confirmed plans to seek a judicial review of this decision.
This denial marks the latest friction between regulators and the crypto industry, with the SEC maintaining that most crypto tokens fall under its regulatory scope as securities. The SEC has taken legal action against various crypto entities, including Coinbase, for offering tokens that should be registered as securities.
SEC Chair Gary Gensler affirmed the applicability of current laws to crypto securities, a view Coinbase's Chief Legal Officer Paul Grewal challenges, calling for collaborative regulatory development to support consumer protection and innovation.
Coinbase has informed a Philadelphia federal court of appeals about its intention to challenge the SEC's decision. Previously in 2022, Coinbase sought SEC action to establish specialized crypto regulations, later petitioning a judge in April to compel the agency's response, which the court declined since the SEC had promised a reply.
Crypto companies seek clearer guidelines on the SEC's criteria for classifying digital assets as securities. Gensler suggests Coinbase's call for new rules implicitly accepts the SEC's governance over the sector—an argument Coinbase has previously contested.
SEC Commissioners Hester Peirce and Mark Uyeda, both Republicans, dissented from the decision, emphasizing the importance of addressing novel challenges posed by emerging technologies in responsible regulation.
This denial marks the latest friction between regulators and the crypto industry, with the SEC maintaining that most crypto tokens fall under its regulatory scope as securities. The SEC has taken legal action against various crypto entities, including Coinbase, for offering tokens that should be registered as securities.
SEC Chair Gary Gensler affirmed the applicability of current laws to crypto securities, a view Coinbase's Chief Legal Officer Paul Grewal challenges, calling for collaborative regulatory development to support consumer protection and innovation.
Coinbase has informed a Philadelphia federal court of appeals about its intention to challenge the SEC's decision. Previously in 2022, Coinbase sought SEC action to establish specialized crypto regulations, later petitioning a judge in April to compel the agency's response, which the court declined since the SEC had promised a reply.
Crypto companies seek clearer guidelines on the SEC's criteria for classifying digital assets as securities. Gensler suggests Coinbase's call for new rules implicitly accepts the SEC's governance over the sector—an argument Coinbase has previously contested.
SEC Commissioners Hester Peirce and Mark Uyeda, both Republicans, dissented from the decision, emphasizing the importance of addressing novel challenges posed by emerging technologies in responsible regulation.
