TechFlow news — On September 24, according to Cointelegraph, the U.S. Court of Appeals for the Third Circuit reviewed the Securities and Exchange Commission's (SEC) decision to deny Coinbase's petition for rulemaking on cryptocurrency regulation, questioning whether the justification provided was too limited. In July 2022, Coinbase requested that the SEC propose and adopt regulatory rules for securities "offered and traded through digital-native methods," including clarification on which crypto assets qualify as securities. The SEC rejected the petition at the end of 2023, prompting Coinbase to file a petition with the appeals court to compel the SEC to respond.
Judge Thomas Ambro stated that while the SEC is not required to provide a detailed explanation for its denial, the record should contain substantial content. He described the SEC's denial order as "almost devoid of content." Coinbase Chief Legal Officer Paul Grewal said on social media that the SEC "refuses to offer a reasonable explanation for its simple denial, yet uses its alleged authority to engage in arbitrary enforcement against our industry."
