The US Securities and Exchange Commission announced on August 22, 2025 that it would not adopt new rules specifically governing digital asset trading despite a petition filed by Coinbase Global seeking regulatory clarity and formal guidelines for the cryptocurrency industry. The SEC cited its existing authority under the Securities Act of 1933 and the Securities Exchange Act of 1934 as sufficient to oversee offerings, trading and custody of crypto assets that meet the legal definition of securities.
The petition from Coinbase requested the SEC to formally adopt comprehensive regulations tailored to the unique characteristics of blockchain-based tokens and decentralized platforms. Coinbase argued that clear rules would benefit both investors and issuers by reducing legal uncertainty, enhancing market integrity and encouraging institutional participation. In denying the petition, the SEC indicated that it prefers to continue evaluating digital asset matters on a case-by-case basis through enforcement actions, guidance and market commentary rather than through broad rulemaking initiatives.
Legal experts say the denial could lead Coinbase to pursue litigation against the SEC to force the agency to clarify its stance on whether certain tokens qualify as securities and to establish safe harbors for key activities like staking and decentralized finance protocols. Industry participants have voiced mixed reactions: some welcome the SEC’s incremental approach as allowing flexibility, while others caution that persistent ambiguity hampers innovation and exposes market participants to unpredictable compliance risks.
Coinbase has stated its intent to challenge the SEC’s decision in federal court, arguing that the SEC’s refusal to engage in formal rulemaking for digital assets violates administrative procedure requirements and undermines investor protection goals. Meanwhile, the SEC continues its litigation against other major cryptocurrency platforms, signaling that it will enforce existing securities laws rigorously without immediate plans to craft specialized regulations for the growing digital asset ecosystem.
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