(Washington) The watchdog of American financial markets, the SEC, on Friday rejected the request from the cryptocurrency exchange platform Coinbase to create specific rules to adapt its texts to the cryptoasset sector.
In a letter to Coinbase, the SEC said it “disagrees” with Coinbase’s assertions that the regulations, trading and custody standards are not “applicable” to cryptoassets.
Additionally, the SEC criticizes Coinbase for submitting a request without providing “text or substance” for the requested new rules.
“Rather, it includes a summary of the subject and more than 100 questions that the applicant considers important to consider,” the commission continues.
SEC Chairman Gary Gensler added, in a statement, that there is “nothing in the crypto securities markets to suggest that investors or issuers have any less protection under the securities laws “.
“Existing laws and regulations already apply to the cryptoasset market,” he insisted.
The SEC has argued for several years that certain digital currencies are financial securities, like stocks or bonds, and are therefore subject to its supervision as an investment product, a highly contested view.
This rebuff comes as Coinbase will have to, in a separate case, defend itself against lawsuits from the SEC which accuses it of not having registered with the stock exchange authorities.
A Coinbase official, Paul Grewal, legal director, responded in a tweet that the platform would appeal this decision in court.
On the Wall Street stock market, Coinbase shares lost 3.43% around 2:40 p.m.
Bitcoin, the star of cryptocurrencies, lost 1.70% to $42,153.
