A federal appeals court has taken on elements of the SEC v. Coinbase legal battle but has yet to determine the exact impact of the decision. The SEC sued Coinbase in 2023 for alleged securities violations and denied the exchange's petition for rulemaking. The court found that the SEC's response was arbitrary and capricious and asked the agency to explain itself. While the court did not order the SEC to institute rulemaking, it considered the decision a victory for Coinbase. The court's ruling echoes a previous case involving the SEC and the Administrative Procedure Act. The ruling forces the SEC to consider its actions against Coinbase more thoroughly.



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