Coinbase Wins Partial Victory In SEC Regulatory Challenge, Court Calls Agency’s Stance ‘Arbitrary’
Posted On January 14, 2025
Cryptocurrency exchange Coinbase Global Inc. (NASDAQ:COIN) secured a partial victory against the Securities and Exchange Commission when a federal appeals court ruled the agency’s denial of crypto rulemaking was “arbitrary and capricious,” while stopping short of forcing new regulations.
What Happened: In a Monday opinion, the U.S. Court of Appeals for the Third Circuit criticized the SEC’s handling of Coinbase’s 2022 petition requesting clear rules for digital assets.
The three-judge panel ordered the agency to better explain its rejection of the petition but declined to mandate immediate rulemaking proceedings.
Judge Thomas Ambro wrote that the SEC’s original denial lacked sufficient reasoning. In a separate …
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