On Dec. 15, the U.S. Securities and Trade Fee (SEC) denied a petition from the cryptocurrency trade Coinbase, which had requested the event of latest guidelines for digital asset securities
In a response letter to Coinbase, the SEC mentioned it “concludes that the requested rulemaking is presently unwarranted and denies the Petition.” The choice comes after almost 18 months of back-and-forth between Coinbase and the securities regulator.
Coinbase initially petitioned the SEC in July 2022, asking the company to create a “new regulatory framework” for crypto asset securities via its formal rulemaking course of. The trade argued current SEC guidelines are “each incomplete and unsuitable” for digital asset securities that function on blockchain expertise.
‘Crypto asset securities’
However in its denial letter, the SEC mentioned it “disagrees with the Petition’s assertion that utility of current securities statutes and laws to crypto asset securities…is unworkable.
The rejection of a specialised crypto framework aligns with SEC Chair Gary Gensler‘s constant view that the majority crypto property fall beneath long-established investor safety guidelines, which he has repeatedly emphasised.
The company mentioned it presently has no plans to undertake the “discretionary rulemaking of considerable scope to create a ‘new regulatory framework’ for crypto asset securities,” as the unique petition. It cited different ongoing SEC initiatives that will inform whether or not future rule adjustments are warranted, writing:
“Furthermore, the Fee has discretion to find out the timing and priorities of its regulatory agenda, together with with respect to discretionary rulemaking akin to that requested within the Petition.”
Earlier than the SEC outright rejected its rulemaking petition on Thursday, Coinbase had taken authorized motion in opposition to the securities regulator, aiming to power a response. In April 2023, the trade filed a lawsuit to compel the SEC to formally settle for or reject a petition initially submitted in July 2022. As of as we speak’s growth, that petition has been answered.
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