SEC: Coinbase Can’t Force the SEC to Release New Legislation

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The SEC has fired back at Coinbase’s attempt to force the creation of an entirely new regulatory system for cryptocurrency.

In a filing before the US Third Circuit Court of Appeals, the SEC argues that its current approach is sufficient and that Coinbase’s petition for a complete overhaul is unreasonable.

The SEC’s response highlights several key points:

• Existing Regulations Are Sufficient: The SEC believes the current legal framework is adequate for regulating digital assets. They point to successful enforcement actions as evidence that courts can effectively apply existing laws to crypto cases.
• Coinbase’s Claims Are Exaggerated: The SEC dismisses Coinbase’s assertions that courts are struggling with current regulations. They argue that successful prosecutions demonstrate judges are comfortable applying existing law.
• No Need to Rush: The SEC emphasizes that dedicating resources to crafting entirely new regulations is unnecessary at this time. They point out that courts rarely overturn an agency’s decision not to create new rules, especially in the absence of a congressional mandate or a threat to public safety.

Overall, the SEC’s filing presents a strong defense of its current approach to crypto regulation. They argue that existing laws are working and that a complete overhaul is neither necessary nor justified.