Coinbase to Challenge SEC’s Denial of Crypto Rules Petition

Published: Dec 15, 2023
Written By:
Vignesh Karunanidhi
Milk Road Writer

The U.S. Securities and Exchange Commission (SEC) has denied a petition from cryptocurrency exchange Coinbase requesting the agency provide more transparent rules and guidance around digital assets. The decision comes despite calls from within the commission for increased collaboration with crypto companies.

In a statement on Friday, SEC chair Gary Gensler defended the agency’s oversight of cryptocurrencies to date. Gensler said there is “nothing about the crypto market that suggests that investors and issuers are less deserving of the protections of our securities laws.”

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Coinbase Chief Legal Officer Paul Grewal expressed disappointment in the SEC’s decision, highlighting the crypto exchange’s efforts to seek clarity for the past 18 months.

Coinbase will challenge the SEC in court

Grewal took to Twitter to announce Coinbase’s intention to challenge the SEC’s denial in court. The Chief Legal Officer asserted that, after an extended period of silence, legal action was necessary to compel a response from the regulatory body.

Key Details:

  • Coinbase will challenge the SEC’s denial of its petition for crypto rules.
  • The exchange sought a response from the SEC after 18 months of silence, resorting to legal action to obtain the required feedback.
  • Grewal criticized the SEC’s perceived abdication of duty, emphasizing the lack of clarity in the law governing the cryptocurrency industry.

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Grewal’s tweet thread captured the essence of Coinbase’s stance, stating, “No one looking fairly at our industry thinks the law is clear or that there isn’t more work to do.” This sentiment reflects the broader perspective within the crypto community that the regulatory landscape for digital assets remains ambiguous and requires further refinement.

Grewal expressed gratitude for the support of two commissioners who opposed the denial and called for open dialogue. The Chief Legal Officer emphasized the need for collaboration in shaping regulations that benefit consumers and foster innovation within the United States.

Vignesh Karunanidhi

Vignesh has been a seasoned professional in the crypto space since 2017. He has been writing for over 6 years and specializes in writing and editing various types of crypto content, including news articles, long-form pieces, and blog posts, all focused on sharing the beauty of blockchain and crypto.

Vignesh Karunanidhi
Milk Road Writer
Vignesh has been a seasoned professional in the crypto space since 2017. He has been writing for over 6 years and specializes in writing and editing various types of crypto content, including news articles, long-form pieces, and blog posts, all focused on sharing the beauty of blockchain and crypto.