- The US Securities and Exchange Commission (SEC) has officially rejected Coinbase’s request for clarification on its authority in the cryptoasset market.
- Coinbase filed a petition in 2022, and after a lengthy trial, the court ordered the regulator to respond.
The SEC Chairman, Gary Gensler, expressed his support for the Commission’s decision and outlined the three reasons for rejecting Coinbase’s request:
- Cryptoassets should be regulated under existing laws.
- The SEC maintains an ongoing regulatory dialogue with industry participants.
- The Commission should have discretion in determining rulemaking priorities.
“We have previously explained that if a specific crypto asset is offered and sold as a security, it must comply with the disclosure and registration requirements outlined by the Commission,” emphasized Gensler.
Gensler also disagrees with Coinbase’s claim that it’s impossible to determine the issuer of cryptoassets, stating that issuers can include both official companies and individuals or entities.
Neither Coinbase nor its general counsel, Paul Grewal, have commented on the situation.
Coinbase initially submitted its petition to the SEC in the summer of 2022. After the court granted their request in May 2023, Coinbase appealed again in November, but this latest request was also rejected.
In its petition, Coinbase demanded that the SEC clarify its powers in the cryptoasset market and develop a regulatory framework tailored to the industry’s specificities.