SEC Denies Coinbase Push for Crypto Regulation, Cites Own Priorities The Securities and Exchange Commission
(SEC) rejected a petition by cryptocurrency exchange Coinbase on Friday requesting the creation of tailored regulations for digital assets. In a two-page response,
the SEC said that after careful consideration, the requested rulemaking was currently unwarranted and the petition by Coinbase was denied. SEC Chair Gary Gensler noted in a statement that the securities regulator
already has sufficient authority under current statutes to govern crypto asset securities and police wrongdoing in the nascent industry. This denial is a setback for Coinbase, which had formally petitioned
the SEC in 2022 to develop specialized crypto regulations, distinct from conventional securities regulations. The exchange argued that shoehorning digital assets into traditional securities
law would stifle innovation in the crypto sector. Coinbase then took the SEC to court to compel
a response to its rulemaking petition.
The SEC disagreed with the notion that established securities laws are unworkable for crypto asset securities, however. The regulator said it has already been proposing rules to directly regulate crypto market participants,
and its enforcement arm has addressed violations effectively thus far.
