(CTN News) – The SEC has officially declined Coinbase’s petition for more transparent crypto rules and regulations. SEC Chair Gary Gensler, in his statement, emphasized that the existing regulations in the market are sufficient.
He also provided two justifications for the denial, including the absence of evidence suggesting that cryptocurrency investors should be exempt from laws.
Gensler also referenced the Howey ruling from the Supreme Court. The digital asset industry has long advocated for tailored regulations for cryptocurrency, as they have faced enforcement-focused regulations in their ongoing legal battle with the SEC.
Despite Coinbase’s official request, the rejection and Gensler’s statement indicate a clear disconnect between their perspectives.
Gensler argued that the existing laws, such as the Securities Act of 1933 and the Exchange Act of 1934, are broad enough to cover the crypto markets.
He emphasized that these laws were designed to regulate investments in any form, including digital assets like cryptocurrencies. Therefore, he believed that there was no need for additional regulations specifically targeting crypto securities.
To support his argument, Gensler pointed to two Supreme Court decisions that have set precedents for the governance of securities laws to cryptocurrencies.
These decisions, which were not explicitly mentioned in the response, likely provided legal interpretations and guidance on how existing laws should be applied to digital assets.
Furthermore, Gensler disagreed with the notion put forth in the petition that the current moment is the appropriate time for regulatory action.
He did not provide specific reasons for his disagreement, but it can be inferred that he believed the existing regulatory framework was sufficient and that additional regulations could potentially stifle innovation or hinder the growth of the crypto securities markets.
Overall, Gensler’s response highlighted the adequacy of existing laws in governing the crypto markets and expressed skepticism toward the need for new regulations at this time.