SEC Chair Gary Gensler has recently re-stated in response to Coinbase that regulations for cryptocurrencies are already in place and that they have been largely ignored by the industry.
Gensler gave the statement while speaking at the Financials Markets Conference in response to questions about the conflict with Coinbase, crypto rules, and why the SEC does not disclose crypto standards.
Gensler Reprimands Crypto Service Providers
Notably, the news comes shortly after Gensler publicly chastised crypto service providers for failing to register their offerings with the Securities and Exchange Commission (SEC).
SEC Chair Gensler has highlighted worries about investor safety, market integrity, and regulatory clarity in the cryptocurrency business. He has noted that existing securities rules can be applied to various cryptocurrencies and the need of adhering to these regulations.
The SEC’s Stance On Crypto Regulation
Furthermore, Gensler emphasized that the SEC has issued rules and guidelines on a variety of industry topics, including custody, exchanges, broker-dealers, advisors, and securities offerings.
He has noted that existing securities rules can be applied to various cryptocurrencies and the need of adhering to these regulations.
Meanwhile, Gensler recently gave statements that all crypto tokens other than Bitcoin (BTC) are categorized as securities. As a result, he highlighted that due to their status as securities, these crypto assets, including Ethereum (ETH), are governed by the regulator.
Beyond Coinbase, Concerns from Industry Players
However, it is worth noting that the regulatory framework for the broader crypto industry remains a subject of ongoing discussion and development. Some cryptocurrency companies, including Coinbase, have expressed reservations about the absence of clear regulatory rules and the SEC’s attitude to crypto regulation.
The firms argue that that clear and predictable law will encourage innovation and allow compliant businesses to prosper while safeguarding investors and consumers.
Request to Change SEC’s Custody Rules
In a letter to the SEC, Coinbase’s Chief Legal Officer, Paul Grewal has requested that the plan and staff instructions of the recent SEC rules regarding custody be changed.
Additionally, he emphasized the need to safeguard all asset classes, including crypto assets, which were previously not categorized as securities.
Essentially, Coinbase stated that the plans unfairly target crypto firms, lack detailed standards for diverse asset classes, and make incorrect assumptions about custodial methods based on securities.