Coinbase, a major cryptocurrency exchange, has chastised the US Securities and Exchange Commission (SEC) for a lack of regulatory clarity and action while also being chastised for insider trading, for which two US regulators have charged the exchange’s former employee.
Coinbase announced on Thursday that it has filed a petition with the SEC requesting that it “begin rulemaking on digital asset securities,” claiming that existing securities rules do not apply to digital assets and that the regulator has been unwilling to make new rules for the crypto sector. They claimed that this has put investors at risk, citing the funds in XRP lost during the regulator’s legal battle with Ripple.
According to the exchange, most digital assets today have securities characteristics, and most are designed to avoid theSecurities laws in the United States According to them,
“To help guide safe and efficient practices, cryptocurrency assets that are securities require an updated rulebook.” Crypto assets that are not securities require the assurance of being exempt from these regulations. Anything less will result in the entrenchment of incumbent technologies at the expense of innovation and, ultimately, consumers.”
This occurred on the same day the SEC announced that the recently charged individuals “purchased at least 25 crypto assets, at least nine of which were securities.” This has prompted numerous questions in the Cryptosphere about regulatory (un)clarity on this issue in the United States.