The US Securities and Exchange Commission (SEC) has filed a counterproposal against Coinbase's petition to set rules for the cryptocurrency industry. in A summary has been provided On May 10, the US regulator objected to Coinbase’s request, saying there was no need to create a regulatory framework for cryptocurrency assets instead of existing US securities laws.
Coinbase Rulemaking Request Without Cause – SEC
In July 2021, Coinbase filed an application with the Securities and Exchange Commission requiring them to conduct a rulemaking to create a new set of regulations to guide the use and operations of cryptocurrencies. Supreme Education Council to reject This request suggests that existing securities laws have been sufficient for cryptocurrency markets, among other reasons.
This action prompted the US Stock Exchange to petition the 3rd US Circuit Court of Appeals for an order compelling the Commission to take the requested rulemaking. In response, US regulators applied to the US court stating that there were no current circumstances that required the formation of this new regulatory framework.
In supporting its case against Coinbase, the SEC stated that its enforcement of existing security regulations has been occurring for decades and cannot be classified as “sweeping new authority.” The Commission also said that it had never changed its position on its authority over crypto assets, and therefore creating new regulations was not necessary.
Furthermore, US regulators have argued that enforcement actions against cryptocurrency-related companies do not require a rulemaking process but rather a check on the effectiveness of existing securities laws.
The summary statement stated the following:
That the Commission has imposed enforcement related to the security of crypto assets The procedures do not require the Commission to approve a rulemaking petition. To the contrary, when the Commission authorized such enforcement actions, the Commission necessarily determined that the agency could assert claims under existing law. The courts presiding over those cases have agreed with an objective judicial assessment that cannot be reconciled with Coinbase's protestations that these enforcement actions are an unauthorized “power grab” and an act of “self-aggrandizement.”
Additionally, they responded to Coinbase's claim of not getting a “reasonable explanation” for denying the rulemaking petition by providing the exchange with a “brief statement” on the topic.
Crypto market overview
In other news, Total Cryptocurrency Market acquired By 0.19% in the last day and is now worth $2.25 trillion. Most major assets posted only slight gains across the board, with Solana (SOL) and Binance Coin (BNB) posting gains by a 1% margin. Meanwhile, market leader Bitcoin continues to trade at $60,980.5, after a disappointing 3.71% decline.
BTC trading at $61,044 on the daily chart | Souce: BTCUSDT chart on Tradingview.com
Featured image from Forbes, chart from Tradingview