**Court Questions SEC's Denial of Coinbase's Crypto Rulemaking Request**

The U.S. Court of Appeals for the Third Circuit recently scrutinized the SEC's denial of Coinbase's plea for crypto rulemaking. Coinbase had requested in July 2022 that the SEC establish rules for securities traded via digital methods, but the SEC dismissed this in late 2023.

On Sept. 23, judges challenged the SEC's minimal reasoning, with Judge Thomas Ambro calling it "pretty darn close to vacuous." Coinbase argued the two-page denial lacked substance, especially amid ongoing enforcement actions against crypto firms.

The judges expressed concern over the lack of clear guidance for the crypto industry. Judge Stephanos Bibas noted the SEC's focus on enforcement rather than providing higher-level guidance. The SEC defended its stance, citing other priorities. This development marks another chapter in the ongoing legal tussle between Coinbase and the SEC.