US SEC rejects Coinbase’s regulatory petition; Coinbase will appeal
Request for establishment of rules for virtual currencies
On the 15th, the U.S. Securities and Exchange Commission (SEC) rejected a rulemaking petition filed by cryptocurrency exchange Coinbase.
SEC Chairman Gensler said he supported this decision because “existing laws and regulations apply to the virtual currency securities market,†and “the SEC also creates rules to respond to the virtual currency securities market.††and “Maintaining the SEC’s discretion to determine rulemaking priorities.â€
connection: US SEC proposes new rules regarding storage of virtual currencies
Coinbase filed a petition with the SEC in July 2022, asking the SEC to “create a workable regulatory framework.†After that, the company filed a lawsuit because it did not receive a response from the SEC, but even after a court order was issued, the SEC maintained its own policy regarding when to respond.
And while the SEC deferred its response, it filed a lawsuit against Coinbase in June 2023 for violating securities laws. This response is in response to that petition.
connection: US SEC refuses to respond to Coinbase’s regulatory petition
Gensler once again cited the Howie Test and argued that the cryptocurrency industry should also comply with securities laws.
What is the Howie test?
A test to determine whether a particular transaction conducted in the United States constitutes a securities transaction under an investment contract. Originated from the SEC’s lawsuit against W.J. Howey (1946).
Although it is not legally binding, the SEC has filed lawsuits against virtual currency stocks and services based on the Howie test. Specifically, the test determines whether the project is raising funds, whether it is a joint venture, whether profits are expected, and whether profits are due to the efforts of others. Additionally, some say that the Howie test is not suitable for the new asset of virtual currency.
Virtual currency glossary
connection:What is the Howey test to determine whether virtual currency falls under “securities�
SEC Member Opposition
Fellow SEC members Commissioner Mark Ueda and Commissioner Hester Pierce (Crypto Mama) once again voiced their opposition to the SEC’s decision.
They acknowledge that the SEC has wide discretion in timing and prioritizing rulemaking, but they acknowledge that the SEC has a wide range of discretion in timing and prioritizing rulemaking, but it is important that market participants and others They point out that opinions should be heard from relevant parties.
He argued that these efforts would allow the SEC to issue guidance and create rules as needed.
coinbase reaction
Coinbase Chief Legal Officer Paul Grewal announced that he has appealed the SEC’s decision.Announcementdid.
Grewal called the SEC’s decision “arbitrary and impulsive.†He will ask the court to direct the SEC to make rules.
He also argued that “no one who looks at the cryptocurrency industry fairly believes that the law is already clear and there is nothing left to do about regulation.â€
We also thank Mr. Ueda and Mr. Pearce for their opposition and call for dialogue, and that we will work together, not in court, to create laws and rules that benefit consumers and American innovation. states that it should be done.
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