SEC Rejects Coinbase's Petition
Date: 2023-12-15 Author: Dima Zakharov Categories: IN WORLD
The U.S. Securities and Exchange Commission (SEC) has made a significant decision regarding Coinbase Global's request for rule development. In a recent announcement, SEC Chairman Gary Gensler made it clear that he disagrees with the notion that the current time is suitable for the implementation of new regulatory measures proposed by Coinbase. According to Gensler, the Commission and its staff are currently engaged in numerous initiatives aimed at overseeing securities and intermediaries in the cryptocurrency sphere. Only a thorough assessment of the results will determine whether any changes are necessary to the existing regulatory framework for the industry.
Chairman Gensler emphasized that the current framework for broker-dealers includes a 5-year period during which specialists, operating under specific circumstances, will not be subject to enforcement actions for violations related to activities involving cryptocurrency-related securities. He argued that there is no need for any alterations in this regard.
Additionally, Commission representatives have requested comments on the rules applicable to "cryptocurrency securities." These rules encompass aspects such as "best execution regulation, protection of advisory client assets, regulatory system integrity and compliance, as well as amendments to the definition of an exchange."
The Commission has been actively taking enforcement actions against certain unscrupulous cryptocurrency market participants.
Gensler stressed that even before the collapse of the FTX trading platform, he had expressed eagerness to collaborate with cryptocurrency projects and teams willing to adhere to the law. Transparent and regulated operations ensure that investors receive comprehensive, fair, and reliable information. SEC Enforcement Division Director Gurbir Grewal stated, "You simply can't ignore the rules because you don't like them or prefer others. Investors benefit when they have access to complete project outlook information and appropriate regulatory oversight."
