The request for crypto regulation by Coinbase has been rejected by the US SEC, which deemed the initiative of the American exchange as ‘unjustified’.
Despite the formal submission of a petition to the agency to initiate the drafting of comprehensive rules on cryptocurrencies, the SEC has refused approval after careful evaluation. Let’s see all the details below.
Summary
The US SEC rejects Coinbase’s proposed crypto regulations
As previously announced, the United States Securities and Exchange Commission (SEC) recently rejected the petition filed by Coinbase, the American crypto exchange, to obtain a customized regulation of digital assets.
Gary Gensler, the chairman of the SEC, stated that the current securities regime adequately regulates crypto-assets, emphasizing that the SEC already has sufficient authority under current laws.
In addition, it has also highlighted that the sector’s supervisory authority has proposed rules to directly regulate crypto activities and the SEC’s enforcement division has successfully addressed illicit issues in this sector.
In addition, Gensler emphasized the importance of maintaining the discretion of the Commission in defining its regulatory priorities.
Coinbase had made this formal request in 2022, after being sued by the SEC for being an unregistered securities exchange.
This year, the exchange had sought the support of a federal court to obtain a response from the SEC, which has now arrived.
The response of the five-member commission, carefully examining the request, has rejected the claim that the application of current laws and regulations on crypto-asset securities is impracticable.
The commission has concluded that the requested regulation is currently unjustified, confirming the rejection of the petition.
In addition, Gensler pointed out, without mentioning Prometheum Inc., that a cryptocurrency broker has implemented a special registration for digital assets, suggesting that this form of compliance is “feasible”.
Coinbase introduces the spot platform for global cryptocurrency trading
The cryptocurrency exchange Coinbase has recently announced the imminent launch of a cryptocurrency spot trading platform, aiming to provide a more efficient trading experience for users globally.
Coinbase, which claims to serve over 100 institutions, has reached a perpetual futures trading volume of approximately $10 billion in the third quarter.
Among recent developments, the exchange has introduced perpetual futures for retail users on Coinbase Advanced. Specifically, listing 15 perpetual contracts that cover a significant portion of the futures trading market.
The maximum leverage has been increased to 10x for all quoted contracts.
The expansion of spot trading will occur in several phases, with the BTC-USDC and ETH-USDC pairs already listed on December 14th for non-US institutional clients.
The initial focus is on creating liquidity and building solid foundations, with subsequent phases involving retail users.
Coinbase has also highlighted the implementation of features to support new trading strategies and improve capital efficiency.
Coinbase has stated that it is focusing its efforts on international expansion, following the “Go Broad, Go Deep” strategy. The exchange plans to introduce more efficient and accessible products and services in the future.
Recognizing the concerns related to regulatory uncertainty of cryptocurrencies in the United States, Coinbase International Exchange will be available exclusively for non-US customers in specific jurisdictions.
Finally, cryptographic derivatives will not be accessible to retail customers in the United Kingdom.
