{"id":18667,"date":"2023-05-16T03:05:13","date_gmt":"2023-05-16T03:05:13","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/sec-chair-gensler-claps-back-at-coinbase-says-crypto-rules-already-exist\/"},"modified":"2023-05-16T03:05:15","modified_gmt":"2023-05-16T03:05:15","slug":"sec-chair-gensler-claps-back-at-coinbase-says-crypto-rules-already-exist","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/sec-chair-gensler-claps-back-at-coinbase-says-crypto-rules-already-exist\/","title":{"rendered":"SEC chair Gensler claps back at Coinbase, says crypto rules already exist"},"content":{"rendered":"
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The chair of the United States Securities and Exchange Commission (SEC) Gary Gensler has hit back at Coinbase\u2019s petition compelling the agency to provide a clear stance on crypto regulation, arguing that there are already adequate laws in place. <\/p>\n

In a May 15 keynote speech at the Financial Markets Conference, Gensler was asked about the dispute with Coinbase, the rules on crypto and why \u201cthe SEC doesn\u2019t publish rules for that market.\u201d<\/p>\n

In response, Gensler staunchly asserted that \u201cthe rules have already been published,\u201d adding that: <\/p>\n

\u201cTo make it quite direct: this is a field that has been operating largely non-compliant. […] There\u2019s nothing about a new technology that makes it non-consistent with the public policies that congress has laid out.\u201d<\/p><\/blockquote>\n

Gensler argued that the SEC has already put out the rules for what is required to custody assets, be an exchange, broker dealer or advisor and how to register securities offerings with the agency. <\/p>\n

Gary Gensler speeking at the Financial Markets Conference. Source: Youtube<\/em><\/figcaption><\/figure>\n

The SEC chair\u2019s current view is that most crypto assets \u2014 apart from Bitcoin (BTC) \u2014 fall under the securities definition of an investment contract. <\/p>\n

\u201cIf the public is investing money and anticipating profit based upon the efforts of others, in a common enterprise, that\u2019s a security,\u201d he said, adding: <\/p>\n

\u201cThere\u2019s financial intermediaries, nodes in the network, and they need to come into compliance if they\u2019ve got securities on their platforms.\u201d<\/p><\/blockquote>\n

Coinbase \u2014 and many other U.S. crypto firms \u2014 have repeatedly spoken out against an apparent lack of clear crypto regulation and the SEC\u2019s so-called \u201cregulation by enforcement\u201d approach to crypto, along with its hostile nature when dealing with digital asset firms. <\/p>\n

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This afternoon, I\u2019ll be joining @AtlantaFed<\/a>\u2019s 2023 Financial Markets Conference.<\/p>\n

My remarks will be livestreamed at 12:45pm: https:\/\/t.co\/T01c8zAD8c#FedFMC<\/a> https:\/\/t.co\/igDs9w8F1y<\/p>\n

\u2014 Gary Gensler (@GaryGensler) May 15, 2023<\/a><\/p><\/blockquote>\n

In April, the firm went as far as to file an action in federal court seeking to compel the SEC to publicly disclose its stance on a petition from July 2022 calling for clear rules for the crypto sector. <\/p>\n

Notably, the U.S. Chamber of Commerce has also echoed this call from Coinbase as it heavily criticized the SEC\u2019s oversight via May 9 amicus brief. <\/p>\n

\u201cThe SEC has deliberately muddied the waters by claiming sweeping authority over digital assets while deploying a haphazard, enforcement-based approach,\u201d it stated. <\/p>\n

Related <\/em><\/strong>SEC under fire for its custody rule: Law Decoded, May 8\u201315<\/em><\/strong><\/p>\n

On May 8, the Coinbase chief legal officer Paul Grewal also sent a letter to the SEC requesting revisions to the agency\u2019s proposed updates to its registered investment advisers custody rule. <\/p>\n

Essentially, Coinbase argued that the proposals unfairly target crypto companies, provide a lack of nuanced rules for different asset classes and make improper assumptions about custodial practices based on securities.<\/p>\n

Other players in the space such as Web3 venture capital fund Andreessen Horowitz (a16z) and the Blockchain Association have also echoed similar criticisms of the proposals. <\/p>\n

Magazine: Crypto regulation \u2014 Does SEC Chair Gary Gensler have the final say?<\/em><\/strong><\/p>\n<\/div>\n