The Securities and Exchange Commission (SEC) denied U.S. cryptocurrency exchange Coinbase’s request on Friday to encourage the creation of a system of specialized regulations for digital assets.The refusal was accompanied by a statement from Chair Gary Gensler stating, “The current securities regime appropriately governs crypto asset securities.”In addition to asserting that the SEC’s current legislative jurisdiction is adequate, he claimed the industry watchdog has been actively proposing rules to directly supervise cryptocurrency businesses and that its enforcement division has been able to deal with misconduct.
Gensler made a third argument, too, that “it is important to maintain commission discretion in setting its own rulemaking priorities.”
Prior to being sued by the SEC for operating an unregistered securities exchange, Coinbase has already implemented this formal pressure in 2022.The agency’s response, which has already been received, was demanded by the company earlier this year from a federal court.
“The commission disagrees with the petition’s assertion that application of existing securities statutes and regulations to crypto asset securities, issuers of those securities, and intermediaries in the trading, settlement, and custody of those securities is unworkable,” the five-member commission concluded in its two-page response, which said the agency had given the request careful consideration. “The commission concludes that the requested rulemaking is currently unwarranted and denies the petition.”
A cryptocurrency broker has utilized a unique digital asset registration, according to Gensler, who made this observation without mentioning Prometheum Inc., indicating that this compliance strategy is “workable.”