EddieJayonCrypto
14 Jan 25
A federal appeals court in Philadelphia ruled in favor of Coinbase, criticizing the SEC's dismissive response to Coinbase's request for crypto-specific rulemaking as "unacceptable." The court ordered the SEC to provide a more detailed explanation for its refusal to create crypto-specific rules. Whil...
The U.S. Court of Appeals in Philadelphia ruled in favor of Coinbase, criticizing the SEC's dismissive response to Coinbase's request for crypto-specific rulemaking as "unacceptable." The court ordered the SEC to provide a more detailed explanation for its refusal to create crypto-specific rules. While the SEC is not compelled to issue new crypto rules, it must justify its decision. The ruling has implications for the SEC's treatment of crypto firms and comes amid potential changes in the agency's leadership. A panel of federal appeals court judges in Philadelphia questioned the SEC's regulation of digital assets and ruled in favor of Coinbase's dispute with the SEC over its refusal to explicitly lay out its crypto policy. The court deemed the SEC's response as "conclusory and insufficiently reasoned, and thus arbitrary and capricious," ordering the SEC to provide a more complete explanation for its decision. The judges declined to force the SEC to create crypto-specific rules but emphasized that the agency must explain its refusal to do so in greater detail. Despite the ruling, Coinbase's request for the SEC to create new crypto rules was not enforced. The SEC is currently reviewing the decision internally and determining the next steps. SEC Chair Gary Gensler's stance on crypto policies, which he claims need no explanation given their compliance with existing securities laws, faces legal challenges and opposition from the sector. Furthermore, the impending resignation of Gensler, set for January 20, is likely to lead to a shift in the agency's treatment of digital assets, as the probable replacement, former SEC commissioner Paul Atkins, is expected to reverse the SEC's aggressive approach to crypto. Subscribe to our newsletter for weekly updates on the latest news and resources. © 2025 Decrypt Media, Inc.