SEC says existing securities laws also apply to crypto

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The U.S. Securities and Exchange Commission (SEC) declined to respond to Coinbases’ request for clarity on crypto regulations.

On May 15, the SEC filed a brief in response to Coinbase’s motion for a writ of mandamus. He made his position clear in that he was not prepared to abide by and provide clarification on crypto regulations.

The Commission asserted that Coinbase does not and cannot demonstrate a clear and indisputable right to redress. Additionally, the regulator claims that it is not obligated to respond or regulate crypto.

Neither securities laws nor the Administrative Procedures Act (APA) require the Securities and Exchange Commission to publish the new general regulations regarding digital assets that Coinbase has requested.

SEC: New regulations not required

The regulator argued that new regulations are unnecessary because digital assets are securities.

The regulatory petition on which Coinbase is seeking an immediate decision asks the Commission to take a series of discretionary steps to replace applicable securities laws and regulations with a comprehensive new regulatory regime for trading crypto assets that are securities.

The SEC also claims that the various paths suggested by Coinbase are complicated. Moreover, the company filed its regulatory petition less than ten months ago. Further, the regulator argued that the petition is less than three months old.

Nothing is happening quickly with US financial regulators, and this point was raised by the SEC in conclusion.

Coinbase’s preference for faster or different regulatory action from the Commission does not entitle it to extraordinary relief from the Court. The request must be dismissed.

At the end of April, Coinbase called for a productive dialogue with the SEC. Following the SEC’s threat of action in late March, Coinbase Chief Legal Officer Paul Grewal said he was disappointed the SEC was considering the courts for constructive dialogue.

A month later, he said that Coinbase had repeatedly asked the SEC for guidance, but to be frank, we mostly got silence in response.

Gary Gensler: The Rules Already Exist

This week’s response is a clear message that Chairman Gary Gensler and his team are not interested in cooperating with crypto companies.

Gensler reaffirmed his position at the May 15 financial markets conference. The rules have already been published, he said in response to questions about the Coinbase spat.

On May 11, the US Chamber of Commerce filed a brief criticizing the Commission in its lawsuit against Coinbase. The SEC’s actions are not just harmful policy; they are illegal; and the consequences of the SEC’s continued delay are also severe for this reason, he said.

Disclaimer

In accordance with the guidelines of the Trust Project, BeInCrypto is committed to providing impartial and transparent reports. This news article aims to provide accurate and timely information. However, readers are urged to independently fact-check and seek professional advice before making any decisions based on this content.

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