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.
Minnesota officials provided updates on the implementation of the state's new marijuana law, including the search for an Office of Cannabis Management (OCM) director and the expedited rulemaking process. While possession and home cultivation of cannabis by adults is now legal, it is expected to be nearly two years before state-licensed retailers open. The state is also in the process of selecting members for a Cannabis Advisory Council and gathering public input on various topics such as business licensing, packaging, and labeling requirements. Tribal governments have also adopted legalization, with the first legal cannabis sale in Minnesota taking place on a reservation. The state is closely monitoring these sales as it prepares for potential compacts with tribes.
The US Court of Appeals for the Third Circuit has ordered the SEC to clarify its position on Coinbase's rulemaking petition within a week. Coinbase had filed a challenge in April, asking the court to force the SEC to respond to its petition for formal rulemaking in the digital assets sector. The SEC has been ordered to explain if it intends to decline Coinbase's request, the reasons for such a decision, or a timeline of when it expects to come to a decision. The SEC is currently suing Coinbase over allegations that it operates an unregistered securities exchange.
Coinbase has filed an Administrative Procedure Act challenge against the US Securities and Exchange Commission (SEC), asking a federal court to force the regulator to provide "regulatory clarity" around how existing securities laws might apply to the digital asset sector. The move comes after the SEC warned Coinbase it expected to sue the exchange over allegations of listing and offering unregistered securities products last month. Coinbase is expected to respond to the specific allegations by the end of April.
