Anti-crypto: SEC Says No to Coinbase and Holds Its Positions

Anti-crypto: SEC Says No to Coinbase and Holds Its Positions

No, no and no. Almost five months after filing with the SEC to request new rules for the crypto sector, Coinbase has finally received an answer, and Brian Armstrong is certainly not happy about it. Gary Gensler himself, in a one-page letter published today, responds point by point to the elements provided by the American platform and rejects all suggestions. Here are three important points to keep in mind.

Gary Gensler answers Brian Armstrong

The first idea of ​​this statement is that all laws and regulations that currently exist are applicable as they are to the securities market. digital titles. And here, the title word (safety) is important because it means that until proven otherwise, cryptocurrencies fall into this asset category. Extract:

“Nothing in the crypto securities markets suggests that investors and issuers are less deserving of the protection of our securities laws. »

Gary Gensler on Cryptocurrencies – Source: press release

PUSH DRY is standing its ground, talking about the Howey test again, standing by its statements from the past months and rejecting requests from Coinbase on the subject. The second point certainly wants to respond to the current debate between the SEC and the CFTC on the regulation of the crypto sector and for Mr. Gensler crypto should be regulated by its agency. Point. According to him, this is already the case in practice, and cooperation between the SEC and companies is increasing.

The SEC is keeping its hands on cryptocurrencies despite what Coinbase thinks

Finally the last point, DRY it reaffirms the nature of its mandate, which comes from Congress, that is, from the people, and therefore calls for respect for its decisions and its own agenda. At a time when there is a lot of pressure on the committee, the boss reminds everyone who makes the decisions and when:

“An important part of the Commission’s responsibility is to determine how to deploy the resources entrusted to us by Congress. We carefully consider timing and priorities (…) and how to use our staff (…). The freedom to determine our priorities (…) with respect to the development of new rules (…) is a fundamental element of our ability to faithfully carry out the mandate of Congress. »

Gary Gensler on Cryptocurrencies – Source: Press Release

He reminds, by the way, that the sector crypto doesn’t weigh much compared to other economic markets, even though it represents a large portion of current legal cases! And a lost bullet for cryptocurrency. Thus, the SEC treats subjects in the order it wants and according to the importance of the request. Crypto is not necessarily a priority and taking care of the rest of the economy takes time.

Conclusions? The SEC maintains control over cryptocurrencies, will continue to apply the existing regulatory framework, and is the one to decide when (possibly) to modify it. Gary Gensler elegantly puts Coinbase in its place and reaffirms its quasi-constitutional authority. A scathing response from the US regulatory chief, who has recently come under fire from within the institution itself.

Leave a Comment

Your email address will not be published. Required fields are marked *