The Third Circuit Court of Appeals has ruled in favor of Coinbase on its petition for a writ of mandamus challenging the Securities and Exchange Commission’s (SEC) handling of its rulemaking petition.
Coinbase Chief Legal Officer Paul Grewal celebrated the victory on social media, highlighting the court’s harsh criticism of the SEC’s approach.
The court found the SEC’s denial of Coinbase’s 2022 rulemaking petition “arbitrary and capricious,” finding it “unsufficiently reasoned.” As a result, the court granted Coinbase’s petition in part and remanded the case back to the SEC for more comprehensive clarification.
“We appreciate the court’s careful consideration,” Grewal said, noting that Judge Bibas agreed.
Cryptocurrency journalist Eleanor Terrett echoed the court’s criticisms, noting that this was yet another example of the SEC’s actions regarding crypto regulation being labeled “arbitrary and capricious.”
The decision requires the SEC to provide detailed justification for rejecting Coinbase’s request for comprehensive rulemaking to establish clearer guidelines for digital assets.
*This is not investment advice.
