The U.S. Securities and Exchange Commission (SEC) yesterday rejected cryptocurrency platform Coinbase’s rulemaking petition. The SEC’s decision was justified by the need to preserve its rulemaking priorities.
Coinbase announced that it would take the issue to court after the SEC rejected its petition for rulemaking.
”Today the SEC denied Coinbase’s petition for rules for crypto. After 18 months of silence, we went to court to get the response the law requires. With appreciation for the Third Circuit, later today we’ll again seek its help by challenging the SEC’s abdication of its duty.”
Coinbase had petitioned the SEC for “regulatory clarity” on how current securities laws could be applied to the digital asset sector. Coinbase had been waiting a long time for a response from the SEC on this petition request, and the awaited answer came yesterday with the SEC’s rejection.
On Friday afternoon, Coinbase submitted another petition to the Third Circuit of the U.S. Court of Appeals. The court will review the appropriateness of the SEC’s decision.
XRP attorney John Deaton and some industry experts and critics believe that the SEC chairman has blatantly misled the American public. Experts who have until now criticized Gensler’s hostile behavior towards exchanges are now suggesting that the SEC is hesitant to back down.
John Deaton: SEC Acted Contradictorily
John Deaton, an attorney for XRP, pointed out contradictions between SEC Chairman Gensler’s previous statements in Congress and the SEC’s recent decision. Deaton reminded that the SEC Chairman had previously stated that cryptocurrency creates a regulatory gap and argued that the SEC’s latest stance does not align with these earlier statements.
Ripple CEO Brad Garlinghouse also mentioned the excessive regulation and uncertainty in the U.S. crypto space. Attorney Deaton further suggested that the SEC Chairman’s stance on cryptocurrencies is politically motivated and strengthened by the support of Senator Elizabeth Warren.