Hassan Maishera
TL;DR
-
SEC Chair Gary Gensler has stated that cryptocurrency rules already exist in the United States.
-
His statement comes after the SEC argued that it is under no obligation to meet the requirements of Coinbase outlined in its petition.
SEC Doesn’t Have To Meet The Requirement Of Coinbase’s Petition
The United States Securities Exchange Commission (SEC) has given a formal response in court regarding Coinbase’s petition for clear crypto regulation.
According to the regulatory agency, any rulemaking for the cryptocurrency space could take years, and enforcement actions will have to be used in the meantime.
In a court document filed on May 15, the regulatory agency argued that it is under no obligation to meet the requirements of Coinbase outlined in its petition. The SEC added that Coinbase s seeking a complex set of reforms and rule-making to be achieved within a short amount of time.
As a result, the SEC has asked the court to deny Coinbase’s petition for mandamus, adding that mandamus is an "extraordinary remedy" and that Coinbase "does not and cannot demonstrate a right" to relief.
Today the SEC responded to Coinbase’s petition for a writ of mandamus — asking the court to require the SEC to respond just yes or no to whether it will undertake rulemaking for our industry. The SEC’s answer? A resounding maybe. 1/7
— paulgrewal.eth (@iampaulgrewal) May 16, 2023#
While commenting on this latest development, Coinbase’s chief legal officer Paul Grewal said the court filing could be the first time the regulatory has explained its views on whether they should create rules that would govern the crypto industry. However, he added that there is still more clarification that needs to be done by the securities regulator.
Gensler Insists That Crypto Rules Already Exist
Gary Gensler, the chairman of the SEC, has argued that rules governing the cryptocurrency industry already exist. He made this statement while speaking at the Financial Markets Conference. He stated that;
“To make it quite direct: this is a field that has been operating largely non-compliant. [...] There’s nothing about a new technology that makes it non-consistent with the public policies that Congress has laid out.”
The SEC chair argued that the regulatory agency has already laid out the requirements for companies to become exchanges, broker-dealers, advisors, asset custodians, and how to register securities offerings.
Gensler continues to argue that most cryptocurrencies, apart from Bitcoin, fall under the securities definition of an investment contract.
