The U.S. Court of Appeals for the Third Circuit has partially ruled in favor of Coinbase in its legal challenge against the SEC, calling for greater transparency in digital asset regulation.
Case Background
The SEC denied Coinbase's request to establish rules for crypto regulation without sufficient explanation, prompting the company's appeal. The court found the denial lacking in reasoning and demanded a clear justification from the agency.
SEC Criticism
The court also criticized the SEC for selectively enforcing securities laws without clear guidance, posing a risk to innovation in the crypto sector.
Implications for the Crypto Industry
Coinbase and other crypto firms argue that current securities regulations don't adequately address blockchain technologies, creating significant compliance challenges.
The court's decision underscores the need for improved clarity in digital asset regulation to overcome current industry challenges.
