U.S. Court Orders SEC to Clarify Its Stance on Crypto Regulations
The U.S. Court of Appeals for the Third Circuit has ruled that the SEC must provide a thorough explanation for its refusal to create regulations clarifying how to determine if crypto assets are securities. Key points from the ruling include:
- The court partially supported Coinbase's request for regulatory clarity.
- The SEC's previous decisions were labeled "arbitrary and capricious."
- The judges ordered the SEC to clarify its stance on crypto assets without necessarily drafting new rules.
- SEC Chair Gary Gensler is set to resign, potentially allowing incoming leadership to shift agency policies.
- Coinbase continues to engage in multiple legal battles against the SEC, including efforts to expedite key questions to appeals courts.
A spokesperson for the SEC stated they are reviewing the ruling for next steps. Coinbase's Chief Legal Officer expressed appreciation for the court's consideration of their petition.