• The U.S. Securities and Exchange Commission (SEC) has rebuked Coinbase for attempting to seek regulatory clarity
• The SEC noted that Coinbase’s requests were “meritless” due to its lack of understanding of the relevant laws
• Coinbase had requested clarification on how the SEC would respond to its offerings of digital assets
SEC Rebukes Coinbase
The U.S. Securities and Exchange Commission (SEC) has rebuked Coinbase for attempting to seek regulatory clarity in regards to its offerings of digital assets. The SEC noted that Coinbase’s requests were “meritless” due to its lack of understanding of the relevant laws.
Coinbase Requested Clarity
Coinbase had requested clarification from the SEC on how it would respond if it offered certain types of digital assets, such as security tokens or non-security tokens, in a regulated manner. However, the SEC stated that the request was meritless as it did not demonstrate an adequate understanding of applicable securities laws and regulations.
SEC Remains Firm On Its Stance
The SEC also noted that it is firm on its stance regarding digital asset offerings, which must be registered with the agency unless they qualify for an exemption from registration under federal securities laws. As a result, any attempt by Coinbase or other entities to seek regulatory clarity on this matter will likely be met with similar responses from the SEC.
Coinbase Response To Clarification Rejection
In response to being rejected for seeking clarification, Coinbase issued a statement noting that it is committed to working with regulators in order to provide clarity around digital asset offerings and ensure compliance with all applicable laws and regulations.
Conclusion
Overall, the rejection from the SEC serves as a reminder for companies looking to offer digital assets in a regulated manner that they must first understand and comply with existing securities laws and regulations before they can proceed with their plans.