SEC Denies Coinbase Petition for New Crypto Rules

The U.S. Securities and Exchange Commission on Friday denied a petition by the country's largest crypto exchange, Coinbase Global, seeking new rules from the agency for the digital asset sector. From a report: The five-member body, in a 3-2 vote, said it would not propose new rules because it fundamentally disagreed that current regulations are 'unworkable' for the crypto sphere, as Coinbase has argued. The letter marked the latest in a broader tug-of-war between the crypto sector and the top U.S. markets regulator, which has repeatedly said most crypto tokens are securities and subject to its jurisdiction.

The agency has sued several crypto companies, including Coinbase, for listing and trading crypto tokens which it says should be registered as securities. 'Existing laws and regulations apply to the crypto securities markets,' SEC Chair Gary Gensler said in a separate statement supporting the decision. In 2022, the company pressed the SEC to create a bespoke set of rules for the crypto sector, arguing that existing U.S. securities laws are inadequate. In April, Coinbase appealed to a judge to force the SEC to respond to the petition.

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