News - SEC rejects Coinbase

By Mike Hesp

SEC rejects Coinbase

In late April, Coinbase called for more clarity in crypto-regulation. According to Gary Gensler and the SEC, however, the existing rules are sufficient.

The SEC has refused to accede to Coinbase's demand for greater clarity in crypto regulations. This is according to a document which was filed on May 15.

According to the document, the U.S. Securities and Exchange Commission is not required to comply with the requirements outlined by Coinbase. Moreover, the crypto exchange had requested a series of complex reforms and regulations in an unreasonably short period of time, the SEC said. The regulator further argued that new rules were not necessary because digital assets are securities.

Specifically, it said, "Coinbase's preference for expedited or other regulatory action by the Commission does not entitle it to extraordinary relief from this Court. The request should be denied."

According to SEC chief Gary Gensler, crypto rules have already been published and are sufficient, he told the Financial Markets Conference. According to Coinbase CLO Paul Grewal, there is still clarification needed. "The SEC told the court that rulemaking can take years and they are in no hurry," he added.

Last month, the SEC gave Coinbase a "wells notice." The notice is usually one of the last steps before the regulator formally files charges. With the aggressive regulatory policies of the SEC and Gary Gensler, experts are warning of an exodus of the crypto industry from the US.

Gary Gensler is clearly not a proponent of cryptocurrencies. He mentioned earlier this year all cryptocurrencies an effect, but made an exception for Bitcoin. This would bring almost all cryptocurrencies under U.S. federal law.

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