The U.S. Securities and Exchange Commission (SEC) has made it clear that it has yet to make a decision regarding the clarification of new crypto rules, in the wake of a request from Coinbase – America’s biggest crypto exchange. Last week, Judge Cheryl Ann Krause of the U.S. Court of Appeals for the Third Circuit, ordered the SEC to disclose whether it has chosen to deny Coinbase’s petition for rule clarification – a petition submitted last year. The petition sought to determine which assets should be considered securities and how to regulate digital securities effectively.
In a recent lawsuit, the SEC accused Coinbase of functioning as an unlicensed securities exchange, prioritizing profit above investor interests. Coinbase’s Chief Legal Officer, Paul Grewal, took to Twitter to express the company’s frustration with the SEC, particularly their refusal to commit to a deadline as demanded by the Court.
This lawsuit against Coinbase is just one facet of a larger crackdown on the crypto industry, directed by SEC Chairman Gary Gensler. Gensler has made his views clear, stating that all digital coins and tokens, bar Bitcoin, are securities. Under his leadership, the SEC has targeted Binance, Binance US, and their CEO, Changpeng Zhao, with 13 civil charges just last week.
The SEC’s expanded focus has also ensnared other American digital asset exchanges, such as Kraken and Gemini, accusing them of dealing in unregistered securities. Gensler, in fact, has suggested that the cryptocurrency industry might not be welcome in the United States, as he believes the sector is “built on non-compliance.”
While the SEC has not decided on Coinbase’s request for clarification, it remains to be seen whether this tightening of regulations will ensure better compliance in the industry or stifle innovation in the rapidly evolving blockchain ecosystem. The ambiguous stance of the SEC, contrasted with the determination of crypto exchanges to seek clarity, serves as a challenging environment for U.S-based traders and investors. Regardless, Coinbase’s stock, trading under the ticker COIN, has seen a 3.6% increase in the last 24 hours, reaching a price of $52.40.
In conclusion, the ongoing battle between the SEC and crypto exchanges, such as Coinbase, hinges on the need for clear regulatory guidelines. While the SEC’s broader crackdown within the industry seeks to safeguard investor interests, it also draws attention to the regulatory challenges that accompany the emergence of new blockchain technologies and digital assets. The outcome of this standoff will ultimately shape the future of cryptocurrency regulation, and as the crypto market continues to evolve, its impact remains to be seen.
Source: Decrypt
