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In an important decision today, the U.S. Securities and Exchange Commission (SEC) denied a petition from Coinbase (NASDAQ:) Global, the largest cryptocurrency exchange in the United States, seeking to establish new regulations suitable for the digital asset industry. The petition, filed by Coinbase in 2022, argues that current US securities laws are inadequate to oversee the emerging cryptocurrency market.
Despite the exchange’s push for a dedicated regulatory framework, SEC Chairman Gary Gensler has consistently rejected the notion that current laws are insufficient for the cryptocurrency sector. In an effort to force the SEC to respond, Coinbase took legal action in April 2023 by suing the agency.
The SEC’s response came today with a letter sent to Coinbase’s Chief Legal Officer, Paul Grewal. The Commission’s letter made it clear that it disagrees with the assertion that current securities regulations are “unworkable” for cryptocurrencies. Gary Gensler reinforced this stance in a statement, emphasizing that “existing laws and regulations apply to the cryptocurrency securities market.”
Reuters contributed to this article.
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