
No new crypto rules, says US SEC after rejecting petition of Coinbase Global
Coinbase's years-long quest for bespoke cryptocurrency regulations hit a major roadblock on Friday, as the Securities and Exchange Commission (SEC) denied the exchange's petition for new rules. This leaves the industry in limbo, with existing laws and ongoing litigation shaping the future of digital asset trading.
Key Highlights:
- SEC Rejects Petition: The agency deemed Coinbase's request "unwarranted," disagreeing with their claim that current securities laws aren't suitable for crypto.
- Coinbase Seeks Legal Challenge: Unhappy with the decision, Coinbase plans to fight the SEC in court, arguing for clearer regulations.
- Dissenting Voices: Two SEC commissioners criticized the dismissal, highlighting the need for adapting regulations to new technologies like crypto.
Unclear Regulatory Landscape:
Gensler's Stance: SEC Chair Gary Gensler reiterates his belief that existing rules apply to crypto, while most firms disagree about a clear path to compliance.
Ongoing Litigation: The lawsuit against Coinbase and Binance over alleged unregistered securities exchanges could offer further clarity on the regulatory landscape.
High Stakes for Coinbase: A potential loss in court could significantly restrict Coinbase's business and limit its ability to list certain tokens.
The SEC's decision throws cold water on Coinbase's hopes for a tailored regulatory framework, leaving the industry to navigate a complex legal landscape. The outcome of ongoing litigation and potential future rulemaking will be crucial in determining the future of crypto trading in the US.
