Coinbase vs SEC Update: The U.S. SEC Rejects Coinbase’s Petition For Crypto Regulations

In the last update on Coinbase lawsuit news, we informed about the tensions that escalated as the regulatory agency upheld its decision to reject CEX’s decision for rulemaking. This entered the scene after the SEC even opposed the Interlocutory Appeal for Coinbase.

Let’s read about the latest Coinbase vs sec update below: 

SEC Counters Coinbase’s Crypto Rulemaking Petition

• The US Securities and Exchange Commission (SEC), has made a move against Coinbase, which is a big player in the crypto world—on May 10, the SEC rejected Coinbase’s idea of making new regulations for cryptocurrencies. They believe the existing US securities laws for stocks and bonds are perfectly fine.
• Back in July 2021, Coinbase asked the SEC to make new rules just for crypto. However the SEC didn’t agree and stated the old rules were fine. Coinbase didn’t agree with the decision, so they went to court & challenged the SEC to change its mind. In reply, the SEC has approached the court, arguing that the present circumstances do not guarantee establishing a new regulatory framework.

SEC Stands Firm on Existing Securities Laws for Crypto

The SEC says it’s been using the old rules for a long time, and they’re not trying to take more power than they should. They’ve always said they have the right to oversee crypto, so they don’t see why they should make new rules.

Also, the SEC thinks that when they take legal action against crypto companies, it shows that the old rules are still strong. Addressing Coinbase’s issues regarding the lack of a “reasonable explanation” for the denial of the rulemaking petition, the SEC points out that it had provided the exchange with a “brief statement” which makes its position clear. They told the court that they’ve been winning these legal fights, which proves they’re doing things right.

Previously, in the Coinbase vs SEC update –the agency defended its move by complaining that the SEC didn’t explain well why it said no to new rules. But the SEC answered that they did give Coinbase a short explanation.

Court Brief On Latest Coinbase SEC Petition

The brief from the court included a lot of information. The most important out of it was:

“That the Commission has brought crypto-asset-security-related enforcement actions does not require the Commission to grant the rulemaking petition. To the contrary, in authorizing those enforcement actions, the Commission necessarily determined that the agency could assert claims under existing law. And the courts presiding over those cases have agreed, an objective judicial assessment that cannot be squared with Coinbase’s protestations that those enforcement actions are an unauthorized “power grab” and an act of agency “self-aggrandizement.”

That’s all we have for you today!
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