• The SEC has issued a statement regarding Coinbase’s request for more regulatory clarity.
• The SEC said that Coinbase’s request was “meritless” and that the company should be aware of its existing obligations.
• The response comes after Coinbase sought more clarity on its status as an investment company from the SEC.
SEC Responds to Coinbase Request
The Securities and Exchange Commission (SEC) recently released a statement in response to a request by cryptocurrency exchange giant, Coinbase, for greater regulatory clarity. In their statement, the SEC deemed Coinbase’s request „meritless“ and reminded them of their existing obligations under U.S. law.
Coinbase Seeks Clarity
Coinbase had asked for clarification on its status as an investment company per the Investment Company Act of 1940. This act governs how companies manage and invest money for investors, and it requires certain types of companies to register with the SEC before they can start offering services or products related to investments.
SEC Denies Meritless Request
In response, the SEC stated that it could not provide such clarity because there was no merit behind Coinbase’s request in the first place. The SEC also pointed out that while some activities might be permissible without registration under certain conditions, these activities are still subject to other legal requirements like anti-fraud provisions and disclosure rules imposed by federal securities laws.
Existing Obligations Remain Unchanged
The SEC further clarified that even though some activities may not require registration with them, this does not automatically exempt companies from their existing obligations under other laws or regulations which may apply to them regardless of their registration status with the commission or lack thereof.
Conclusion
Ultimately, this latest move by the SEC serves as a reminder to all cryptocurrency exchanges operating in the United States regarding their existing obligations under U.S law – especially when it comes to handling customer funds and investments – regardless of whether they are registered with the commission or not.