• The US Court of Appeals for the Third Circuit affirmed that the SEC must explain why it denied Coinbase's petition.
  • Coinbase petitioned the agency to clarify how securities laws apply to cryptocurrencies.
  • The court added that it will not mandate the SEC to implement new rules for crypto assets.

In a statement on Monday, the US Court of Appeals for the Third Circuit mandated the Securities & Exchange Commission (SEC) to comply with Coinbase's petition regarding crypto regulations.

Coinbase secures court approval for SEC to clarify crypto regulations

The US Court of Appeals for the Third Circuit ordered the SEC to respond to Coinbase's petition concerning cryptocurrency regulations. The SEC had previously denied Coinbase's request, but the three-judge panel ruled that this denial was unreasonable.

"Because we believe the SEC's order was conclusory and insufficiently reasoned, and thus arbitrary and capricious, we grant Coinbase's petition in part and remand to the SEC for a more complete explanation," the court said in a statement.

Coinbase's case with the SEC began in July 2022 after the exchange petitioned the regulator to provide an adequate explanation regarding how securities laws apply to digital assets.

The petition also urged the agency to develop regulatory frameworks that fit into the world of digital assets, making it easier for companies to comply with federal laws.

"In the securities-law context, it is unremarkable that novel complex financial instruments may not always fit neatly within existing securities rules, especially if inherent attributes of those novel financial instruments may undermine the objectives of those rules," the court noted.

The exchange and the wider crypto community see the court's stance as a big win for the crypto industry. 

However, the court also stated that it won't order the SEC to implement rulemaking proceedings at this stage.

Meanwhile, the Washington Post revealed in an article on Monday that the Trump transition team and entrepreneur David Sacks are working on a legislative strategy in collaboration with crypto industry leaders.

The article noted that Donald Trump is expected to sign executive orders on his first day in office. The order will allegedly tackle issues related to the de-banking of crypto companies and the repeal of Staff Accounting Bulletin 121 (SAB 121).


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC & ETH rebound, XRP rallies ahead of CPI data

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC & ETH rebound, XRP rallies ahead of CPI data

Bitcoin and Ethereum prices continue to recover on Wednesday after finding support around their key levels this week. On the other hand, Ripple remains strong and found support around its upper symmetrical triangle boundary.

More Cryptocurrencies News
Ripple donates $100,000 to California wildfire relief efforts; XRP investors anticipate SEC's opening brief

Ripple donates $100,000 to California wildfire relief efforts; XRP investors anticipate SEC's opening brief

Ripple is up 5% on Tuesday following recent positive developments surrounding its ecosystem and JP Morgan's prediction of over $8 billion in inflows into XRP ETF if it gains approval from the Securities and Exchange Commission.

More Ripple News
Bitcoin could lose its diversification status as correlation with stocks increases

Bitcoin could lose its diversification status as correlation with stocks increases

Bitcoin's rising correlation with the traditional stock market is gradually affecting its role as a portfolio diversifier. This trend has been visible following Bitcoin's similar reactions to the S&P 500 upon macroeconomic data releases.

More Bitcoin News
Crypto Today: BTC taps $97K, DOGE and XRP in green as SEC sues Musk ahead of Trump Inauguration

Crypto Today: BTC taps $97K, DOGE and XRP in green as SEC sues Musk ahead of Trump Inauguration

The cryptocurrency sector rose by 2.4% on January 14, with the aggregate market capitalization crossing $3.3 trillion. Bitcoin price reclaimed the $97,000 resistance level, with technicals signaling upside ahead. 

More Cryptocurrencies News
Bitcoin: Room for a recovery or continuation of the pullback?

Bitcoin: Room for a recovery or continuation of the pullback?

Bitcoin’s price slightly recovers and trades around $94,700 on Friday after declining nearly 6% earlier this week. US Bitcoin spot Exchange Traded Funds data shows signs of mild recovery, with a total net inflow of $462.2 million until Thursday.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP