The SEC announced that they rejected the petition submitted by Coinbase, the largest cryptocurrency exchange in the USA, to establish cryptocurrency rules and regulations.
In the letter addressed to Paul Grewal, Coinbase's chief legal officer, the SEC stated that this letter was written in response to their Petition for Rulemaking.
In its letter, the SEC said that the Coinbase petition merely proposes to establish rules to create a new regulatory framework, and that the petition does not contain any proposed rules or content.
“….Exercising its broad discretion to determine the rulemaking agenda, the Commission concludes that the requested rulemaking is unwarranted at this time and denies the Petition.
However, the Commission will consider the Petitioner's views on issues related to cryptoasset securities raised in the petition.
The Commission benefits from and will continue to engage with market participants, including those focused on cryptoasset securities.
“To the extent future circumstances warrant, the Commission may consider the issues raised in the Petition in more detail.”
After this statement of the SEC, SEC Chairman Gary Gensler stated that he supports this decision of the SEC and said:
“I was pleased to support this decision by the SEC for three reasons.
First, existing laws and regulations also apply to crypto securities markets.
Second, the SEC is also addressing crypto securities markets through rulemaking.
Third, it is important for the SEC to maintain discretion in determining its own rulemaking priorities.”
*This is not investment advice.
