image source
An important turning point in the fight for cryptocurrency regulation was reached when a federal court ordered the SEC to explain its decision to reject Coinbase's rulemaking petition.
In the ongoing conflict between Coinbase and the U.S. Securities and Exchange Commission (SEC), a significant legal milestone has been reached. Paul Grewal, the chief legal officer at Coinbase, declared on the social media site X on Monday that the company's request for an injunction had been granted by the Court of Appeals for the Third Circuit. Grewal clarified:
Our request for an injunction was recently granted by the Third Circuit.
"The SEC's order is exhaustive and incompletely reasoned, and thus arbitrary and capricious," the Court said in reprimanding the SEC for rejecting our rulemaking petition. We partially approve Coinbase's petition and send it back to the SEC for a more thorough response. The legal chief of Coinbase added.
The SEC was ordered by the Third Circuit appeals court to give a rational justification for its conduct. After the SEC denied its rulemaking petition, which sought precise regulatory rules for the cryptocurrency business, without offering a convincing explanation, Coinbase had sought this remedy.
Numerous proponents of cryptocurrency and legal professionals have praised the ruling. "In Gensler's last days, his anti-crypto crusade is failing, and a federal appeals court has exposed what the industry has said for years: his selective enforcement of securities laws was a (not so) secret attempt to completely restrict the industry," said Stuart Alderoty, general counsel for Ripple, in celebration of the ruling. Disgraceful.
The Blockchain Association's chief policy officer, Jake Chervinsky, referred to the ruling as groundbreaking. He added, "Congratulations and thanks to Coinbase for this win against the SEC."
Because it came from a circuit court, where legally binding precedent is set but few crypto cases have been challenged, this victory is especially significant. The administrative state is gradually being subdued by the court.
Nonetheless, other legal experts, like lawyer Fred Rispoli, saw this ruling as a defeat for Coinbase, pointing out that the company lost on the majority of the points and only managed a small victory in the end. He clarified that upon recusal, the SEC's failure to offer adequate justification for dismissing Coinbase's petition may be readily remedied. However, Rispoli noted the significance of the concurring opinion of Judge Stephanos Bibas, which stressed that antiquated regulations are unsuitable for contemporary technologies like cryptocurrency. He said that the SEC's regulatory approach to cryptocurrencies might be significantly weakened if the Second Circuit follows the same logic.
So please do a proper comment below and if you have something to ask then comment box is always open for you. please share this article on X social media platform. thanks for beinnhere and now Faiz signing off have a nice day and take care hivers.....
"Your time is limited, so don't waste it living someone else's life. Don't be trapped by dogma — which is living with the results of other people's thinking." -Steve Jobs
MESSAGE ME ON telegram(@faiz19711)
Posted Using INLEO