US court orders SEC to explain why it denied Coinbase's request for crypto-specific rules

- The U.S. Court of Appeals for the Third Circuit has ordered the SEC to provide an explanation for denying Coinbase's request for specific cryptocurrency regulations, labeling the SEC's decision as "arbitrary and capricious."

- The court did not mandate the SEC to initiate rulemaking but emphasized the need for a more thorough rationale behind its inaction regarding crypto-specific guidelines.

- Coinbase has been in a prolonged dispute with the SEC over regulatory clarity since it first requested guidance in July 2022, and the SEC has faced criticism for its enforcement actions without clear compliance standards.

- Judge Stephanos Bibas expressed concerns about the adequacy of existing regulations for new technologies, highlighting potential due process issues related to the SEC's enforcement actions against crypto firms.

https://www.theblock.co/post/334353/us-court-orders-sec-to-explain-why-it-denied-coinbases-request-for-crypto-specific-rules