Global: SEC Rejects Coinbase’s Request for Crypto-Specific Regulations

The Securities and Exchange Commission (SEC) has turned down a petition from cryptocurrency exchange Coinbase, wherein the exchange sought new regulations tailored specifically for the digital asset sector.

Filed by Coinbase in July of the previous year, the petition urged the SEC to “propose and adopt rules to govern the regulation of securities that are offered and traded via digitally native methods.”

In a 3-2 vote, the commission rejected the petition, expressing disagreement with the assertion that the current regulatory framework is “unworkable” for crypto securities.

SEC Chair Gary Gensler stated, “The existing securities regime appropriately governs crypto asset securities.”

Coinbase has faced legal challenges from the SEC since submitting the petition, with the regulator suing the exchange for allegedly operating its crypto asset trading platform without proper registration as a national securities exchange, broker, and clearing agency.

Republican Commissioners Hester Peirce and Mark Uyeda supported Coinbase’s petition, issuing a joint statement that emphasized the petition’s significance in addressing challenges posed by new technologies and other innovations.