In a significant ruling, U.S. judges ordered the Securities and Exchange Commission (SEC) to provide a comprehensive explanation for its refusal to create clear regulations regarding crypto assets. This decision came during the final days of SEC Chair Gary Gensler's tenure and could lead to a shift in the regulatory stance under new leadership. The U.S. Court of Appeals for the Third Circuit indicated that the SEC's previous decisions were 'arbitrary and capricious' and noted that the agency must either establish clear rules or articulate its position on crypto assets more clearly. Coinbase has been engaged in ongoing legal battles with the SEC and welcomed the court's ruling. The judges emphasized that rather than simply dismissing the request for new regulations, the SEC is required to substantiate its decisions, raising questions about the agency's overall approach toward crypto oversight. With Gensler set to depart, incoming leadership may utilize this ruling as justification for reforming crypto regulations.

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