The US Securities and Exchange Commission (SEC) has officially rejected the petition request for more transparent crypto rules and regulations from cryptocurrency exchange Coinbase.
Additionally, SEC Chair Gary Gensler stated the rulemaking request’s denial, pointing out that there are already enough regulations in place in the market.
Gensler provided two more justifications for the denial in his statement that was made public. He denied any evidence, however, that those who invest in cryptocurrencies “are less deserving of the protections of our securities laws.” In his remarks, he also cited the SEC v. Howey ruling from the Supreme Court.
The digital asset industry has been outspoken in its demand for US regulations tailored to the cryptocurrency industry over the past two years.
In a protracted legal dispute with the SEC, businesses operating in this sector have been subject to enforcement-focused regulations. Finally, begging the organization to change its direction.
Coinbase’s official request for transparency in cryptocurrency rules and regulations has been officially rejected by the SEC. Additionally, SEC Chair Gary Gensler issued a statement that clearly shows how completely he has missed the mark.
In his reply, Gensler outlined three explanations for the rejection. He said that current laws already “apply to the crypto securities markets,” above all else. After that, he cited two Supreme Court rulings that represent how these cryptocurrency securities laws are governed.
According to Gensler, the purpose of the securities laws created by Congress was to regulate investments “in whatever form they are made and by whatever name they are called.”
On the other hand, he disagreed with the claim made in the petition that “this is the appropriate time for the regulatory action it suggests.”
Also Read: Coinbase’s Legal Battle with SEC: Expert Predicts Partial Victory
