• Coinbase requested clarity on cryptocurrency regulations from the SEC, which refused to comply.
• The SEC argued that it has no obligation to respond to or regulate cryptocurrencies.
• Coinbase filed a petition in April asking for the agency to give a ‘yes or no’ answer as to whether an asset is a security.
Coinbase Requesting Clarity From SEC
Coinbase has requested clarity from the United States Securities and Exchange Commission (SEC) regarding crypto regulation in July 2022, but has yet to receive an answer. In April, Coinbase filed a petition asking the agency for a ‚yes or no‘ answer as to whether an asset is considered a security.
SEC Refuses To Comply With Request
The SEC has responded to Coinbase’s request and refuses to entertain the exchange’s demands. On May 15, the SEC filed a brief in response and said it is not prepared to provide clarity on current crypto regulations. The agency argued that it is under no obligation to meet the requirements set out in Coinbase’s petition and asked the court to deny its mandamus request.
SEC Argues Regulations Are Not Needed
The SEC argued that new regulations are unnecessary as it deems digital assets securities already. In its filing, the agency said: „The rulemaking petition as to which Coinbase seeks an immediate determination asks the Commission to take a series of discretionary actions…to replace existing applicable securities laws and regulations with a comprehensive new regulatory regime for the trading of crypto assets that are securities.“
Coinbase Chief Legal Officer Reacts
Paul Grewal, Coinbase’s chief legal officer tweeted early this morning saying that this filing might be the first time where we see what their views are on whether they should create rules for cryptocurrency industry however there is still much left unclear.
In conclusion, although Coinbase has requested clarity from the SEC regarding cryptocurrency regulations, so far all attempts have been denied by them and they stress that new regulations are not needed as digital assets can already be considered securities according their view which continues being unclear at this point.