The U.S. Securities and Exchange Commission (SEC) has filed objections to Coinbase’s rulemaking petition for the cryptocurrency industry. In a report filed on May 10, U.S. regulators argued against Coinbase’s request that there be no need to create a regulatory framework for cryptocurrency assets in place of existing U.S. securities laws.
Coinbase Rulemaking Request Without Provocation – SEC
In July 2021, Coinbase filed a request with the SEC requesting rulemaking to establish new regulations to guide the use and operation of cryptocurrencies. The SEC denied this request, citing, among other things, that existing securities laws are sufficient for the cryptocurrency market.
The action prompted the U.S. exchange to file a petition with the U.S. Court of Appeals for the Third Circuit seeking an order compelling the Commission to carry out the requested rulemaking. In response, US regulators approached the US court stating that there are no current conditions requiring the formation of this new regulatory framework.
In support of its case against Coinbase, the SEC said existing securities regulations have been in place for decades and cannot be classified as “new authorities.” The commission also said it has never changed its position on authority over cryptocurrency assets, so creating new regulations is unnecessary.
Moreover, U.S. regulators have argued that enforcement actions against cryptocurrency-related companies do not require a rulemaking process but rather verify the effectiveness of current securities laws.
Here’s what I briefly read:
The Commission brought about cryptocurrency security-related enforcement Taking action does not require the Commission to approve the rulemaking petition. Conversely, in approving such enforcement action, the Commission necessarily determined that the agency could assert claims under existing law. And the court presiding over the case agreed to an objective judicial assessment that could not be matched by Coinbase’s protest that these executive actions were an unauthorized “power grab” and an act of “self-aggrandizement” by the agency.
Additionally, they countered Coinbase’s claim that it did not get a “reasonable explanation” for the rulemaking petition’s denial, providing the exchange with a “brief statement” on the topic.
Cryptocurrency Market Overview
In other news, the overall cryptocurrency market is up 0.19% over the past day and is now worth $2.25 trillion. Most major assets posted modest gains across the board, with Solana (SOL) and Binance Coin (BNB) gaining by a 1% margin. Meanwhile, market leader Bitcoin continued its disappointing decline, falling 3.71% and continuing to trade at $60,980.5.
BTC trading at $61,044 on the daily chart | Souce: BTCUSDT chart on Tradingview.com
Featured image from Forbes, chart from Tradingview