Regulation
SEC rejects Coinbase petition for new crypto regulations
The United States Securities and Exchange Commission (SEC) has filed a countermotion against Coinbase’s request for regulation of the crypto industry. In a dissertation submitted On May 10, the US regulator opposed Coinbase’s application, saying there was no need to create a regulatory framework for crypto assets in place of existing US securities laws.
Coinbase Regulation Request Without Reason – SEC
In July 2021, Coinbase filed a request with the SEC demanding that it develop rules to establish a new set of regulations to guide the use and operations of cryptocurrencies. The second denied this request indicating that existing securities laws were sufficient for crypto markets, among other reasons.
This action prompted the American stock market to file a petition with the Third United States Court of Appeals for an order requiring the Commission to undertake requested rulemaking. In response, US regulators contacted the US court stating that there were no current conditions requiring the formation of this new regulatory framework.
By supporting his cause against Coinbase, The SEC has said its enforcement of existing security regulations has been decades-long and cannot be considered “radical new authority.” The Commission also stated that it has never changed its position on its authority over crypto assets, and therefore there is no need to create new regulations.
Additionally, U.S. regulators have argued that their enforcement actions against crypto-related businesses do not require a rulemaking process but rather validate the effectiveness of current securities laws.
A statement from the brief reading:
The fact that the Commission has initiated enforcement measures related to the security of crypto-assets does not oblige the Commission to grant the regulatory request. Rather, in authorizing these enforcement actions, the Commission necessarily determined that the agency could assert claims under existing law. And the courts presiding over these cases agreed, an objective judicial assessment that cannot be reconciled with Coinbase’s protests that these coercive measures constitute an unauthorized “power grab” and an act of “self-aggrandizement” of ‘agency.
On top of that, they countered Coinbase’s claim that they were not given a “reasonable explanation” for the denial of the regulatory request, as they provided the exchange with a “brief statement” on the subject.
Crypto Market Overview
Furthermore, the total crypto market won by 0.19% over the past day and is now valued at $2.25 trillion. Most major assets saw only slight gains across the board, with Solana (SOL) and Binance Coin (BNB) leading the way with gains by a margin of 1%. Meanwhile, market leader Bitcoin continues to trade at $60,980.5, following a disappointing decline in which it fell 3.71%.
BTC trading at $61,044 on the daily chart | Souce: BTCUSDT chart on Tradingview.com
Featured image from Forbes, chart from Tradingview