SEC Counters Coinbase’s Petition For New Crypto Regulations

As a researcher with extensive experience in the crypto industry, I find the SEC’s countermotion against Coinbase’s rulemaking petition intriguing. The SEC argues that there is no need for creating a new regulatory framework for crypto assets as existing securities laws are sufficient. However, I believe that this issue is more complex than what meets the eye.


The SEC, or United States Securities and Exchange Commission, has submitted an opposing argument to Coinbase’s petition for establishing new regulations for the crypto industry. In their May 10 filing, the regulatory body maintains that current U.S. securities laws are sufficient for governing crypto assets without the need for creating a separate regulatory framework.

Coinbase Rulemaking Request Without Cause – SEC

In July 2021, Coinbase asked the Securities and Exchange Commission (SEC) to create new regulations specifically for the use and management of cryptocurrencies through rulemaking. However, the SEC rejected this proposal, believing that current securities laws are adequate for overseeing crypto markets.

As a researcher studying regulatory proceedings in the United States, I’ve discovered that the American exchange initiated legal action by filing a petition with the US Third Court of Appeals, requesting the court to compel the Commission to undertake the necessary rulemaking in response to their proposal. However, the US regulators have countered this by stating before the same court that there are currently no prevailing conditions which mandate the establishment of this new regulatory framework.

The SEC maintains that its long-standing interpretation of securities regulations applies to Coinbase’s case and cannot be labeled as a recent power grab. The Commission emphasizes that its position regarding crypto assets has remained consistent and unchanged, implying that new regulations are not required.

The US regulatory bodies have maintained that their law enforcement actions against crypto businesses don’t necessitate rulemaking procedures. Instead, they believe the current securities laws are effective in addressing these issues.

A statement from the brief read:

The Commission’s decision to take enforcement actions regarding crypto-asset security doesn’t automatically mean they must grant the rulemaking petition. To the contrary, by allowing these actions, the Commission has established that it can make claims under current laws. Courts presiding over these cases have concurred, a judgment that contradicts Coinbase’s allegations of an unjustified power grab and self-serving agency behavior.

Along with their argument challenging Coinbase’s assertion that they didn’t receive a clear rationale for the rejection of their petition, they presented a succinct explanation to the exchange regarding the issue at hand.

Crypto Market Overview

Recently, the overall crypto market experienced a growth of 0.19% within the past day, reaching a value of $2.25 trillion. The majority of significant assets exhibited minimal advances. Notably, Solana (SOL) and Binance Coin (BNB) stood out with increases of approximately 1%. Conversely, Bitcoin (BTC), the market frontrunner, currently trades at $60,980.5 after a dismal 3.71% decrease.

SEC Counters Coinbase’s Petition For New Crypto Regulations

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2024-05-12 10:42