U.S. SEC Refuses Coinbase’s Request for Updated Digital Asset Regulations, Legal Review Initiated

Recently, the U.S. Securities and Exchange Commission (SEC) dismissed a proposal made by Coinbase, aimed at creating new rules for digital assets. Coinbase This regulatory body, comprised of five members, voted 3-2 against the suggestion to propose new regulations, rejecting Coinbase's argument that current rules don't effectively cater to the needs of the cryptocurrency industry. digital asset sector.

Following the SEC's ruling, Coinbase promptly stated its intention to contest this decision legally by filing a petition for review. This ongoing tension highlights a persistent struggle for authority between the crypto industry and the regulatory agency.

The SEC, which has classified most crypto assets as securities, has previously taken legal action against several cryptocurrency firms, including Coinbase, alleging improper token listings and trading activities that should fall under securities regulations. regulatory authority in U.S. financial markets.

Chair of the SEC, Gary Gensler, supported the ruling by asserting, 'Current laws and regulations are applicable to markets involving crypto securities.' However, Paul Grewal, Coinbase’s Chief Legal Officer, refuted this, emphasizing that objective evaluation of the industry points to a significant lack of clarity in the law and the urgent need for cooperative development of regulations that serve consumers and foster innovation within the U.S.

Shortly after the SEC's ruling, Coinbase proactively notified a federal appeals court in Philadelphia about its plan to seek a review, claiming the denial was 'arbitrary and capricious' and represented an 'abuse of discretion.' This judicial effort is part of Coinbase’s broader initiative from 2022 urging the SEC to formulate a set of customized regulatory frameworks for the cryptocurrency realm, citing shortcomings in the current U.S. securities laws.

Coinbase sought judicial action to compel the SEC to respond to its petition, although the court decided against enforcing this due to the SEC's promise to address Coinbase's grievances.

In April, Coinbase Firms within the industry have persistently sought greater clarity regarding the SEC's criteria for classifying a digital asset as a security.

Cryptocurrency Coinbase's Recent Struggles in Kazakhstan

Not long ago, Kazakhstan's Ministry of Culture and Information officially confirmed that Coinbase's website would be blocked within the nation's borders, citing alleged breaches of the local Digital Assets Law. This action sparked widespread discussions about the regulatory framework tailored for crypto and digital exchanges in the region.

This decision by the Ministry's Information Committee came in response to an appeal from the Ministry of Digital Development, Innovation, and Aerospace Industry. cryptocurrencies This latter ministry claimed that Coinbase's operations were in violation of specific legal stipulations, particularly those that bar engagement in unsecured digital assets and cryptocurrency exchange activities without proper state authorization.

While Coinbase is the most recent entity to encounter such regulatory hurdles, it is by no means the only one facing these challenges.

Interactive Brokers and the New York Mercantile Exchange (NYMEX) have also dealt with temporary bans amid accusations related to financial pyramid schemes and conducting cryptocurrency futures trading outside the regulatory boundaries set by the Astana International Financial Center (AIFC).

U.S. Securities and Exchange Commission

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