In late April, Coinbase called for more clarity on crypto regulation. However, according to Gary Gensler and the SEC, the existing rules are sufficient. The SEC has refused to comply with Coinbase’s request for more clarity in crypto regulations.
This is evidenced by a document filed yesterday, May 15. According to the document, the U.S. Securities and Exchange Commission was not required to comply with the requirements outlined by Coinbase. In addition, the SEC said the crypto exchange would have required a series of complex reforms and rulemakings in an unreasonably short period.
The regulator further argued that new regulations were unnecessary because digital assets are securities.
Specifically, it said, “Coinbase’s preference for expedited or other regulatory action by the Commission does not entitle it to extraordinary relief from this Court. The petition should be denied.”
According to SEC chief Gary Gensler, crypto rules have already been published and are sufficient, as he shared at the Financial Markets Conference.
According to Coinbase CLO Paul Grewal, clarification is still needed. “The SEC told the court that rulemaking can take years, and they are in no rush,” he added.
Last month, the SEC issued Coinbase a “wells notice.”
The notice is typically one of the previous steps before the regulator formally brings charges.Due to the aggressive regulatory policies of the SEC and Gary Gensler, experts warn of an exodus of the crypto industry from the U.S.