The U.S. Court of Appeals for the Third Circuit reviewed the Securities and Exchange Commission’s (SEC) decision to deny Coinbase’s cryptocurrency regulation rulemaking petition, questioning its rationale as overly limited.

In July 2022, Coinbase asked the SEC to propose and adopt regulatory rules for "securities offered and traded through digitally native methods," including clarifying which crypto assets are securities.

The SEC rejected the petition in late 2023, prompting Coinbase to ask the Court of Appeals to compel the SEC to respond. Judge Thomas Ambro said the SEC did not need to explain its reasons for the rejection in detail, but that substantive content should be included in the record. He called the SEC's rejection order "almost empty."

Coinbase Chief Legal Officer Paul Grewal said on social media that the SEC "refuses to provide a reasonable explanation for its simple rejection, but instead uses its so-called power to arbitrarily enforce the law against our industry." (Cointelegraph) #Binance