By Soyoung Ho, Reuters
Soon after Coinbase filed a crypto rulemaking petition with the SEC in late July, the virtual industry began a lobbying campaign to support the online crypto trading platform’s request.
As of the afternoon of Aug. 22, 2022, almost 1,700 individuals or organizations signed a form letter specifically asking SEC Chair Gary Gensler for clear rules of the crypto road. Four individuals wrote their own letters to the SEC with a similar request.
“The potential for web3 is almost limitless, and we will all benefit if we can keep the innovation here in the United States,” the form letter states. “As consumers, developers, investors, entrepreneurs, small businesses, and platforms, we believe that for web3 progress and leadership to flourish, the United States needs well-designed regulation of the subset of crypto assets that are crypto securities, not ad hoc litigation or speeches that change depending on the politics.”
This has been a common refrain among critics of the SEC, especially Gensler because the chair sets the commission’s rulemaking agenda. He has maintained that the SEC has clear rules for the crypto industry, including for those who operate trading and lending platforms. If exchanges have digital assets that function like a security, then they need to follow the securities laws in full or get an exemption to follow scaled-down versions of the rules.
