SEC Denies Coinbase's Crypto Rulemaking Petition, Prompting Legal Battle

The U.S. Securities and Exchange Commission (SEC) has rejected Coinbase's petition for rulemaking on transactions involving cryptocurrencies that are considered securities. SEC Chair Gary Gensler stated that existing laws and regulations already apply to the crypto market and that the timing for Coinbase's proposed rulemaking is not appropriate, as the SEC is currently seeking comments on crypto-related rules. Coinbase's chief legal officer, Paul Grewal, responded to the decision by stating that they will challenge the SEC's refusal to respond to their petition in court. SEC Commissioners Hester Peirce and Mark Uyeda criticized the decision, suggesting that the issues raised in the petition should be addressed through public roundtables and requests for comment.