The US Court of Appeals for the Third Circuit ruled in Coinbase's favor regarding a civil case against the Securities and Exchange Commission (SEC). In its opinion on January 13, the court noted that the SEC's denial of Coinbase's request for rulemaking on cryptocurrency regulation was arbitrary and lacked sufficient reasoning. Coinbase had requested rules to clarify which digital assets should be classified as securities when offered through digital methods. The judges found the SEC's response to be inadequate and ordered a remand for better explanation, as the commission's unclear stance on regulation could harm the crypto industry. The judges expressed concern over the SEC's sporadic enforcement of existing rules, which they believe might unfairly target the cryptocurrency sector, risking a de facto ban. The situation emphasizes the need for clearer regulations to protect both the industry and consumers from potential fraud.

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