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SEC Cracks Open the Egg of Uncertainty but Fails to Scramble a Plan


In short: The US SEC has requested at least four months to make a recommendation after cryptocurrency exchange Coinbase sent a petition in July last year asking for guidance and clarity on regulation for the asset class. Despite the regulator's inaction, Coinbase's chief legal officer, Paul Grewal, said the SEC refused to commit to any deadline, despite a court order to do so, and accused it of trying to give the impression it had made no decision on new crypto rules. The SEC has been accused of launching an "outright attack" on digital asset trading this year. Our quick analysis: In the latest development from the cryptocurrency world, the U.S. Securities and Exchange Commission (SEC) has finally responded to Coinbase's request for regulatory guidance. So, what's the verdict? Well, not much. The SEC has asked for more time, requesting four months to make a recommendation on the matter. Even though Coinbase made the appeal back in July 2022, the watchdog has taken its own sweet time, despite its recent crackdown on the industry. But why the delay? According to Coinbase's chief legal officer, Paul Grewal, the SEC is yet to commit to a deadline, despite a court order issued to the contrary. Grewal also pointed out that the watchdog continues to ignore its own chair's statement, which states that there is no intention to issue new rules. Instead, the SEC is confusing the evidence of this decision with a spurious argument that the statement itself is a decision. It's worth highlighting that the SEC's recent attacks on the cryptocurrency world have led to widespread backlash. In a recent development, a group of lawmakers filed a bill that calls for removing Gary Gensler, the chair of the SEC, from his post and restructuring the watchdog. While this latest development may not have stirred the markets, crypto markets remain range-bound and continue to consolidate. As of writing, BTC prices have touched $26,000, while Ethereum prices remain at $1,744. Today, the only bright spot seems to be Binance coin (BNB), which has seen a 7.6% gain on the day following a court's directive to Binance. US and the SEC to reach an agreement and avoid an asset freeze. In summary, the SEC has cracked open the egg of uncertainty surrounding cryptocurrency regulations, but it's yet to scramble up a plan. Image provided by Unsplash Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.

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