The U.S. Securities and Exchange Commission (SEC) has rejected Coinbase Global's request for new rules for the digital asset industry.。Coinbase, a major cryptocurrency exchange, has sought to develop tailored regulations for the cryptocurrency industry, arguing that current U.S. securities laws are not perfect.。

However, SEC Chairman Gary Gensler said in a letter to Coinbase's chief legal officer that he disagrees with the claim that existing securities regulations do not apply to the cryptocurrency industry.。

SEC Chairman: Existing Law Applies to Crypto Securities

In a statement on the SEC's website, Gensler stressed that the current law already applies to the crypto securities market, citing the flexibility of the Supreme Court's Howie test, which the federal court has successfully applied to crypto assets.。He dismissed claims that it is not feasible to identify "issuers" of crypto-asset securities, stressing the importance of information disclosure and investor protection.。

Gensler highlights the Commission's ongoing rulemaking initiatives for the crypto securities market。Despite Coinbase's assertion that now is the right time for regulatory action, he pointed to existing efforts, such as the Special Purpose Broker Release, which gives crypto-asset stockbrokers a five-year term.。He also referred to proposed rules and enforcement actions related to crypto-assets, stressing the need for flexibility in responding to changing markets.。

Registration and compliance critical to market integrity

Participants stressed that maintaining the SFC's discretion is essential for the effective deployment of resources and the prioritization of the regulatory agenda.。The SEC chairman stressed that the cryptocurrency market, while vulnerable to fraud and non-compliance, is only a small part of the $110 trillion capital market.。

The SEC's discretion allows for a focused approach to areas that require updated regulation。Gensler concluded by saying that despite the challenges, meaningful participation, registration and compliance are essential for investor protection and market integrity.。The SEC's decision to reject the application is consistent with the view that existing securities regulations properly govern crypto-asset securities, ensuring adequate disclosure and a level playing field for industry participants.。