CryptoMode Reports SEC’s Response to Coinbase Regarding Crypto Regulation Clarification, Criticizing Its Attitude Instead of Implementing Changes.
The chief legal officer of Coinbase, Paul Grewal, has expressed concern over the Securities Exchange Commission’s (SEC) regulatory approach to cryptocurrencies. The SEC recently stated in court filings that developing specific rules may take several years, with enforcement actions continuing in the interim, a stance that has raised concern within the crypto industry. The SEC has denied having an obligation to comply with Coinbase’s request for more precise regulation surrounding cryptocurrencies, arguing there is “no valid right to relief”. The regulator has also cited the complexity of considering the various paths suggested by Coinbase. Grewal maintains that the response solidifies Coinbase’s concerns surrounding the lack of clarity in the SEC’s regulatory responsibilities, adding “Our industry does not have clarity on what the SEC may consider to be within or outside its jurisdiction at any time”. The SEC’s court filing emphasized that securities laws or the Administrative Procedure Act do not impose any obligation on the regulator to establish new regulations on digital assets requested by Coinbase. Gary Gensler, chairman of the SEC, previously argued that existing rules for crypto were already in place and adequate in a keynote speech at the Financial Markets Conference, a stance that some see as contrasting with the regulator’s response in court.
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