Well, it has been a while since the clash between the SEC and exchanges like Coinbase, Binance, etc. There have been some court fights between the two sides as well.
The Court of Appeals of the United States for the 3rd Circuit has examined the denial of Coinbase's request on the part of SEC for crypto rulemaking, questioning its limited reasoning.
Back in July 2022, Coinbase asked the Securities and Exchange Commission to suggest and adopt rules to govern securities that are “offered and traded via digitally native methods,” which includes clarification on which cryptos are securities.
However, in late 2023 this was denied by the regulator which has led Coinbase to ask the Court of Appeals to order the SEC to reply to the petition.
Members of a D.C. Third Circuit panel questioned the SEC on September 23 over its justification for rejecting Coinbase's petition, implying that it was "close to vacuous" or lacking in substance.
A two-page denial was issued by the SEC to Coinbase's petition for crypto rulemaking in December but according to the exchange, the two-page denial was not sufficient and arbitrary.
Reportedly, Concerning the absence of clear guidelines for the crypto industry, asking how companies could adhere to current regulations that would not be appropriate given the nature of crypto assets and decentralized protocols.
Image Source: Reuters
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