Federal Appeals Court Critiques SEC’s Handling of Coinbase Case
A federal appeals court addressed the SEC v. Coinbase case, pending further impact evaluation. Key points include:
- The SEC sued Coinbase in June 2023 for alleged securities violations.
- The SEC denied Coinbase's petition for rulemaking in December, which argued that current securities laws are unsuitable for crypto regulation.
- The court noted the SEC's response was brief and lacked sufficient reasoning.
- Judge Bibas stated the SEC must clarify its choices regarding rulemaking versus enforcement.
- The ruling did not mandate the SEC to initiate rulemaking but criticized its previous explanations as arbitrary.
- Coinbase perceives this opinion as a victory, supporting its argument for clearer regulatory guidelines.
- Judges highlighted issues with the SEC's inconsistent treatment of similar products.
- Concerns were raised about the SEC's enforcement actions potentially harming the entire crypto industry.