Coinbase Files Petition to the SEC Calling for Better Cryptocurrency Regulations in the US

Coinbase has filed a petition with the SEC to improve rulemaking on digital asset securities.

Coinbase Files Petition to the SEC Calling for Better Cryptocurrency Regulations in the US

Photo Credit: Unsplash/ PiggyBank

Coinbase highlights its complaints about the current regulatory framework in its petition

Highlights
  • Coinbase has filed a petition calling for better regulatory clarity
  • The exchange wants the SEC to come up with a regulatory framework soon
  • The SEC has announced charges against three former Coinbase employees
Advertisement

Coinbase has filed a petition to the US Securities and Exchange Commission (SEC) criticising the existing state of cryptocurrency regulation in the country. The global crypto exchange' Chief Policy Officer Faryar Shirzad explained the reasons behind the petition in a blog post Thursday, saying that without effective regulation the US will fall behind in digital asset innovation. The company stressed the importance of establishing guardrails, given the market meltdown that has wiped out trillions of dollars and bankrupted several companies over the past few months.

"When it comes to crypto securities there is a significant, foundational hurdle that has prevented that market from maturing. That hurdle is the fact that the securities rules simply do not work for digitally native instruments,” Shirzad wrote.

"Crypto assets that are securities need an updated rulebook to help guide safe and efficient practices,” Shirzad further argued. "Crypto assets that are not securities need the certainty of being outside those rules. Anything short of that will have the effect of entrenching incumbent technologies at the expense of innovation and ultimately, consumers."

In the petition, Coinbase Chief Legal Officer Paul Grewal outlined the key challenges associated with regulating cryptocurrencies, including a lack of clarity on which digital assets constitute securities, and conflicting or unnecessary requirements. Grewal also listed a series of questions for the SEC to consider in creating a regulatory framework, addressing classification, issuance, trading and custody.

Meanwhile, the SEC has claimed in a new court filing that at least nine digital assets listed on the cryptocurrency exchange Coinbase are unregistered securities.

The nine assets in question are AMP, Rally, DerivaDEX, XYO, Rari Governance Token, LCX, Powerledger, DFX Finance, and Kromatika.

The SEC and the Department of Justice have also announced charges against former Coinbase Product Manager Ishan Wahi and two others, accusing them of running an insider-trading scheme that earned them more than $1.1 million (roughly Rs. 8.8 crore) in illicit gains. Wahi allegedly tipped off his brother Nikhil Wahi and his friend, Sameer Ramani, about upcoming token-listing announcements on the crypto exchange.


Noise co-founder Amit Khatri joins Orbital, the Gadgets 360 podcast, for a special episode. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
Affiliate links may be automatically generated - see our ethics statement for details.
Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Further reading: Cryptocurrency, Coinbase, SEC
Realme Buds Wireless 2S Price in India Tipped Ahead of July 26 Launch: All Details
Share on Facebook Gadgets360 Twitter Share Tweet Snapchat Share Reddit Comment google-newsGoogle News

Advertisement

Follow Us

Advertisement

© Copyright Red Pixels Ventures Limited 2024. All rights reserved.
Trending Products »
Latest Tech News »