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<p class="is-style-lead">According to a Dec. 15 release, the U.S. Securities and Exchange Commission has rejected Coinbase’s request for transparent crypto rules.</p> 
<p>This follows Coinbase’s filing of a narrow action in federal court that would compel the U.S. Securities and Exchange Commission (SEC) to respond yes or no to a July 2022 petition asking the SEC to use its formal rulemaking process.</p> 
<p>According to Coinbase сhief legal officer Paul Grewal, the company will attempt to have the SEC abdicate its duty to determine crypto regulation standards via another appeal.</p> 
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   <p lang="en" dir="ltr">Today the SEC denied Coinbase’s petition for rules for crypto. After 18 months of silence, we went to court to get the response the law requires. With appreciation for the Third Circuit, later today we'll again seek its help by challenging the SEC’s abdication of its duty. 🧵⬇️ <a href="https://t.co/tFjiW53eF7" target="_blank">pic.twitter.com/tFjiW53eF7</a></p>— paulgrewal.eth (@iampaulgrewal) <a href="https://twitter.com/iampaulgrewal/status/1735716481541996640?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">December 15, 2023</a>
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<p>On Dec. 15, Chairman Gary Gensler announced the SEC’s denial of <a href="https://www.sec.gov/news/statement/gensler-coinbase-petition-121523" target="_blank" rel="noopener">Coinbase’s Rulemaking Petition</a>, citing three reasons: existing laws already apply to crypto securities markets, the SEC addresses crypto securities markets through rulemaking, and the need to preserve Commission discretion in establishing rulemaking priorities.</p> 
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   <p lang="en" dir="ltr">🚨NEW: The <a href="https://twitter.com/SECGov?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">@SECGov</a> has denied <a href="https://twitter.com/coinbase?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">@coinbase</a>’s petition for the agency to create transparent rules of the road for <a href="https://twitter.com/hashtag/crypto?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener">#crypto</a>. The is SEC standing firm on its belief that “existing laws and regulations already apply to the crypto securities markets.” <br><br>See full decision here:…</p>— Eleanor Terrett (@EleanorTerrett) <a href="https://twitter.com/EleanorTerrett/status/1735674176281718879?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">December 15, 2023</a>
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<p>The statement highlights the principles outlined in Howey and Reves, which have effectively guided analyses across diverse investment types for decades and prioritize the economic substance of transactions over labels or forms.</p> 
<p>Gensler adds that over the years, federal courts have consistently applied these Supreme Court precedents to various crypto assets, with no court deeming these standards impractical for evaluating a crypto asset’s specific facts and circumstances.</p> 
<p> You might also like: <a href="https://crypto.news/ethereums-dominance-to-persist-despite-solanas-investor-appeal-coinbase-says/"> Ethereum’s dominance to persist despite Solana’s investor appeal, Coinbase says </a> </p> 
<h2 class="wp-block-heading" id="gensler-wants-to-work-with-crypto">Gensler wants to work with crypto</h2> 
<p>Gensler concludes that, <a href="https://twitter.com/CoronadoForXRP/status/1735678846106574861" target="_blank" rel="noopener">unlike community comments</a> that suggest he is against innovation, he stands on the side of compliance.</p> 
<p>“As I said prior to the collapse of one of the largest non-compliant crypto intermediaries that cost investors billions of dollars, meaningful engagement with the SEC is always welcome,” <a href="https://crypto.news/gensler-sec-reevaluating-spot-bitcoin-etf-with-fresh-perspective/">Gensler</a> says in the statement’s conclusion. “I look forward to working with crypto projects and intermediaries that wish to comply with the law.”</p> 
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   <p lang="en" dir="ltr">Commissioner Uyeda and I responded to today's denial of Coinbase's rulemaking petition: <a href="https://t.co/uBC9Bujhqd" target="_blank">https://t.co/uBC9Bujhqd</a></p>— Hester Peirce (@HesterPeirce) <a href="https://twitter.com/HesterPeirce/status/1735689794661847185?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">December 15, 2023</a>
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<p>In response to the release, Commissioners Hester Peirce and Mark Uyeda said that while they are disappointed that the Commission is not hosting these conversations, they will have an open ear for conversations and other emerging ideas.</p> 
<p> Read more: <a href="https://crypto.news/binance-to-list-solanas-bonk-following-coinbase/"> Binance to list Solana’s BONK following Coinbase </a> </p>

SEC denies Coinbase’s plea for clear crypto regulations

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