The US Securities and Exchange Commission (SEC) has filed a countermotion against Coinbase’s rulemaking petition for the crypto industry. In a brief submitted on May 10, the US regulator argues against Coinbase’s request stating there is no need for creating a regulatory framework for crypto assets in place of existing US securities laws.

In July 2021, Coinbase filed a request with the SEC demanding they conduct rulemaking to establish a new set of regulations to guide the use and operations of cryptocurrencies. The SEC denied this request stating that the existing securities laws were sufficient for the crypto markets among other reasons. 

This action prompted the American exchange to file a petition with the US Third Court of Appeals seeking an order that forces the Commission to undertake the requested rulemaking. In response, the US regulators have approached the US court stating there are no current conditions that require the formation of this new regulatory framework. 

In supporting its case against Coinbase, the SEC stated that its application of the existing security regulations has occurred for decades and cannot be categorized as a “sweeping new authority”. The Commission also said that it has never changed its stance on its authority over crypto assets, thus creating new regulations was unnecessary. 

Furthermore, the US regulators argued that its law enforcement actions against crypto-related businesses do not demand a rulemaking process but rather validate the effectiveness of the current securities laws. 

A statement from the brief read:

That the Commission has brought crypto-asset-security-related enforcement actions does not require the Commission to grant the rulemaking petition. To the contrary, in authorizing those enforcement actions, the Commission necessarily determined that the agency could assert claims under existing law. And the courts presiding over those cases have agreed, an objective judicial assessment that cannot be squared with Coinbase’s protestations that those enforcement actions are an unauthorized “power grab” and an act of agency “self-aggrandizement.”

In addition to this, they countered Coinbase’s claim of not getting a “reasonable explanation” for the denial of the rulemaking petition as they provided the exchange a “brief statement” on the subject matter.

In other news, the total crypto market gained by 0.19% in the last day and is now valued at $2.25 trillion. Most major assets recorded only slight gains across the board with Solana (SOL) and Binance Coin (BNB) leading with gains in the 1% margin. Meanwhile, Bitcoin, the market leader, continues to trade at $60,980.5, following a disappointing decline in which it fell by 3.71%. 

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