Coinbase Slams SEC for Refusing to Create Crypto Rules

• Coinbase has accused the SEC of not acting towards creating crypto rules.
• Coinbase is looking for the courts to order the SEC to change its stance, as they believe that there are existing regulations which fall under securities law.
• The SEC Chair believes that regulations already exist, and crypto should be regulated under existing laws.

Coinbase Condemns SEC and Gensler

Coinbase has accused the U.S. Securities and Exchange Commission (SEC) and its Chair Gary Gensler of not conducting rulemaking for cryptocurrencies. In a new court filing, Coinbase seeks a writ of mandamus from the Third Circuit of the U.S. Court of Appeals, ordering the agency to propose digital asset securities rules in response to its petition for rulemaking filed last July.

The Writ of Mandamus

The writ of mandamus accuses the SEC of ignoring other petitions from the cryptocurrency industry for years, while continuing to state publicly that there will be no rulemaking and enforcing enforcement actions instead of considering Coinbase’s petition. Thus, Coinbase believes that regulating by enforcement is preferred over creating formal rules and regulations by the agency.

SEC’s Stance on Crypto Regulations

However, Gary Gensler maintains that regulations already exist for cryptocurrencies – they just fall under securities law – during his speech at House Appropriations Subcommittee on Financial Services and General Government on March 29 this year.

Battle Between Crypto Industry and Regulators

The battle between regulators like the SEC and cryptocurrency industry in America is starting to peak with major exchanges such as Coinbase emerging as champions for those affected by them.

Conclusion

This article highlights how Coinbase is actively seeking clarity on crypto regulation in America by challenging it in court with a writ of mandamus against the SEC. The agency however continues to maintain their stance that existing laws are enough when it comes to regulating cryptocurrencies in America