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Judge Stephanos Bibas of the Third Circuit Court has remanded a case involving the U.S. Securities and Exchange Commission (SEC) and Coinbase for further consideration, stating that the SEC's actions require additional justification. The decision was issued on January 13, 2025.
"The DAO Report did not provide a precise formula for determining when a digital asset is a security," said Bibas. "Whether the SEC has articulated adequate legal bases for any of its particular enforcement actions against digital-asset firms is not before us."
According to Justia, Judge Bibas ruled that the SEC must provide a more detailed explanation for its denial of Coinbase’s petition, which sought tailored regulatory rules for digital assets. The case, argued in September 2024, underscored Coinbase’s concerns about compliance difficulties and regulatory ambiguity when applying existing securities laws to cryptocurrencies. The court found that the SEC's rejection lacked sufficient reasoning and did not adequately address challenges posed by the evolving digital asset landscape.
