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Title: US Judges Demand Explanation from SEC for its Refusal to Set Clear Crypto Rules
US judges have demanded clarification from the Securities and Exchange Commission (SEC) regarding its failure to establish clear regulations for cryptocurrencies. The demand comes in light of a recent court ruling that has brought fresh controversy to the regulatory landscape.
In June 2023, the SEC filed a lawsuit against Coinbase, arguing that certain digital assets offered by the exchange should be classified as securities. However, the regulator’s stance was recently dealt a blow when the US Court of Appeals ruled that the case should not proceed due to the novelty of cryptocurrencies and differing opinions across jurisdictions.
Coinbase has hailed the decision as a victory, with its legal head, Paul Grewal, stating that it is a significant win for the company. The ruling has sparked concerns among market participants about the need for clear regulations in the cryptocurrency space.
The SEC’s refusal to provide guidance on the matter has led judges to demand an explanation regarding the regulatory agency’s stance. In a statement, the court emphasized that its decision was not intended to absolve the SEC of its duty to regulate cryptocurrencies in a manner that is consistent with its statutory obligations.
“We cannot overemphasize the importance of providing clear and definitive guidance on the legal status of these assets,” said the judges. “The lack of clarity in this matter has led to confusion among market participants, which can have far-reaching consequences for investors and the overall stability of the financial system.”
In light of this ruling, it is expected that the SEC will provide a clearer definition of its regulatory stance on cryptocurrencies.
Source: coinjournal.net
