Benzinga - U.S. regulators rejected a rulemaking petition submitted by Coinbase Global Inc. (NASDAQ: COIN).
What Happened: Last year, Coinbase drafted a “petition for rule making."
The company sent the 30-page document to the U.S. Securities and Exchange Commission (SEC), claiming that the U.S. lacked “a clear and workable regulatory regime” for digital assets.
The SEC didn't pay the petition much mind until, earlier this year, Coinbase attempted to get a judge to force the agency to reply.
Today, the SEC replied, rejecting the petition. SEC chair Gary Gensler, expressed his support for the decision, underlining three primary reasons:
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Why It Matters: Cryptocurrency rules and regulations are murky in the U.S. But the SEC says the broad definition of security, as stipulated in the Acts of 1933 and 1934, applies. The so-called "Howey" test incorporates a variety of instruments like investment contracts (as established by the Howey and Reves Supreme Court decisions).
Gensler often reiterates this, stressing that registration and compliance, while demanding, are essential to ensure full and fair disclosure for investors.
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