- The US Securities and Exchange Commission (SEC) has filed a countermotion against Coinbase’s rulemaking petition for the crypto industry.
- The US regulator argues there is no need for creating a regulatory framework for crypto assets in place of existing US securities laws.
- Coinbase had filed a request with the SEC demanding they conduct rulemaking to establish a new set of regulations to guide the use and operations of cryptocurrencies.
The SEC has countered Coinbase’s request for a new regulatory framework for cryptocurrencies, arguing that existing US securities laws are sufficient. This development comes amidst a broader discussion on the need for clear regulatory guidelines in the crypto industry.
SEC Counters Coinbase’s Rulemaking Request
In July 2021, Coinbase filed a request with the SEC demanding they conduct rulemaking to establish a new set of regulations to guide the use and operations of cryptocurrencies. The SEC denied this request stating that the existing securities laws were sufficient for the crypto markets among other reasons. This prompted Coinbase to file a petition with the US Third Court of Appeals seeking an order that forces the Commission to undertake the requested rulemaking.
SEC’s Argument Against New Regulations
In response to Coinbase’s petition, the SEC argued that there are no current conditions that require the formation of a new regulatory framework. The Commission stated that its application of the existing security regulations has occurred for decades and cannot be categorized as a “sweeping new authority”. Furthermore, the SEC argued that its law enforcement actions against crypto-related businesses do not demand a rulemaking process but rather validate the effectiveness of the current securities laws.
Crypto Market Overview
Meanwhile, the total crypto market gained by 0.19% in the last day and is now valued at $2.25 trillion. Most major assets recorded only slight gains across the board with Solana (SOL) and Binance Coin (BNB) leading with gains in the 1% margin. Bitcoin, the market leader, continues to trade at $60,980.5, following a disappointing decline in which it fell by 3.71%.
Conclusion
The SEC’s countermotion against Coinbase’s request for a new regulatory framework underscores the ongoing debate on the need for clear regulations in the crypto industry. As the market continues to grow and evolve, the call for a comprehensive regulatory framework that can accommodate the unique characteristics of cryptocurrencies becomes increasingly important. However, the SEC’s stance suggests that existing securities laws are adaptable and sufficient for the current state of the crypto market.
