Court Orders SEC to Reconsider Coinbase Rulemaking Denial
- The U.S. Court of Appeals for the Third Circuit ruled partially in favor of Coinbase against the SEC.
- The court found the SEC’s rejection of Coinbase’s petition for cryptocurrency-specific regulations “arbitrary and capricious.”
- The decision was delivered on January 13, 2025, regarding a petition initially filed in 2022.
- Judge Thomas L. Ambro criticized the SEC’s actions as “conclusory and insufficiently reasoned.”
- Judge Stephanos Bibas raised concerns about the constitutional aspects of the SEC’s enforcement strategy.
The appellate court has mandated that the SEC provide a clearer explanation for its denial of Coinbase’s request for new digital asset rules, highlighting deficiencies in current regulatory approaches.
