US SEC denies Coinbase petition for crypto rulemaking

WASHINGTON (Reuters) – The U.S. Securities and Exchange Commission on Friday denied a petition by the country’s largest crypto exchange Coinbase (NASDAQ:COIN) Global asking the agency to create new rules for the digital asset industry.

Coinbase in 2022 pressed the SEC to create a bespoke set of rules for the crypto sector, which has long said existing U.S. securities laws are inadequate for regulating the nascent industry. But SEC Chair Gary Gensler has repeatedly rejected such claims.

Still waiting on a response from the SEC, Coinbase in April 2023 sued the agency, asking a judge to force the SEC to respond to its petition.

The SEC issued that decision on Friday, saying in a letter to Coinbase’s chief legal officer Paul Grewal that the Commission disagrees current securities regulations and laws are “unworkable” for the crypto sector.

“Existing laws and regulations apply to the crypto securities markets,” SEC Gary Gensler said in a statement supporting the decision.

Coinbase did not respond immediately to request for comment on the SEC’s denial.