SEC Upholds Current Laws, Rejects Coinbase's Crypto Rule Change After Court Ruling

May 13, 2024, 08:12 PM

The U.S. Securities and Exchange Commission (SEC) has recently responded to Coinbase's petition for new regulatory rules tailored for crypto assets, citing the exchange's difficulties in compliance. The SEC criticized Coinbase for questioning the applicability of the Howey Test to cryptocurrencies, asserting that the current securities framework is adequate. This comes after Judge Katherine Polk Failla's March ruling supported the SEC's stance that Coinbase had indeed offered securities. The SEC's filings argue against what they term a 'power grab' by Coinbase, emphasizing that the exchange cannot reject the legal framework after deciding to arrange its business to challenge it. In its preliminary statement, the SEC reiterated these points.