A U.S. court has compelled the U.S. Securities and Exchange Commission (SEC) to explain its refusal to create rules for the crypto industry, deeming it 'arbitrary and unfounded.' The Third Circuit Court of Appeals partially granted the lawsuit of the cryptocurrency exchange Coinbase against the SEC on January 13, but did not obligate the regulator to initiate the process of developing crypto regulations. Coinbase has been urging the SEC since 2022 to establish rules for regulating digital assets, including defining which of them are considered securities. The SEC rejected the request in 2023, which prompted the cryptocurrency exchange to go to court. The court noted that the SEC's refusal was insufficiently justified, and one of the judges emphasized that the 'ambiguity' of the Commission's actions harms companies working with digital assets. Judge Stephanos Bibas stated that 'applying inappropriate rules to cryptocurrency companies threatens an entire industry.'
The court's decision does not require an immediate start to the development of new rules. However, the SEC must provide a justified explanation for its refusal to develop them.#AltcoinBoom #10DaysToTrump #SECCryptoAccounting #SECCrypto #SECApprov
