In a recent hearing at the Third Circuit Court of Appeals, Coinbase, a major cryptocurrency exchange, presented its demand for clear regulations from the US Securities and Exchange Commission (SEC). Paul Grewal, the Chief Legal Officer of Coinbase, expressed frustration that despite multiple requests for crypto regulations, the SEC has been ignoring them. Coinbase argued that without clear rules, it is unclear which regulatory body crypto companies should register with. The exchange filed a petition in 2022, asking the SEC to propose rules for the regulation of digital assets and to determine which assets are securities. However, the SEC's chair, Gary Gensler, denied the request, stating that existing laws and regulations already apply to the crypto securities market. Coinbase's counsel argued that there is no registration system in place for crypto businesses, but the SEC still takes enforcement actions against companies for failure to register. Coinbase requested the court to order the SEC to start creating rules, but the SEC's counsel was unable to provide clear answers. The court acknowledged that the SEC does not have to justify its decision to deny rulemaking but noted that the lack of clarity is an issue. Overall, the SEC's stance on the crypto sector is being questioned, and it remains to be seen how this will develop in the future.



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