US Court Demands SEC Explain Denial of Crypto Regulations

In the latest bout between the SEC and cryptocurrency, a US court is demanding the regulator explain why it denied Coinbase’s request for crypto-specific regulations. The U.S. Securities and Exchange Commission is now under a federal court order to offer a full explanation for why the agency refused to offer clear rules for crypto securities.

A three-judge panel for the U.S. Court of Appeals for the Third Circuit, in a legal rebuke of the securities regulator, partially sided with Coinbase’s effort to get the agency to offer legal clarity by writing crypto regulations this week. “Rather than force the agency to make a rule, we order it to explain its decision not to,” one of the judges wrote. “Indeed, a rule may not prove necessary to solve the notice problems here; the agency could just state its position on crypto assets unequivocally.” Judge Stephanos Bibas added: “It should not give yet another poor explanation in an already-long line of them.”

US Court Puts SEC Under Microscope for “Capricious” Crypto Regulation

The demand comes in the final week of Chair Gary Gensler’s tenure, who will step down as SEC Chair next week. In line to replace him is, a Republican chosen by incoming President Donald Trump. Atkins is expected to lead a new SEC that will have much looser restrictions on the cryptocurrency industry, opening the door to clearer regulations.