PANews, January 14 news, according to CoinDesk report, the U.S. Third Circuit Court of Appeals ruled that the U.S. Securities and Exchange Commission (SEC) must fully explain its decision to refuse to develop clear rules for the cryptocurrency industry. This ruling partially supports Coinbase's request, finding that the SEC's stance on crypto assets is "arbitrary and capricious". This ruling occurred in the last week of SEC Chairman Gary Gensler's term, and may provide an opportunity for the incoming Republican-appointed chairman Paul Atkins to adjust the direction of cryptocurrency regulation. The court emphasized that the SEC needs to take a clear stance rather than continue to avoid the rule-making issue, especially given the controversy surrounding the agency's enforcement-focused crypto regulatory policies in recent years.

Previously, the SEC has suffered legal setbacks in the Grayscale Bitcoin Spot ETF application case and Coinbase-related cases. The court found the SEC's reasons for denial to be "conclusory and lacking in reasoned decision-making", and warned it not to provide "shoddy explanations" again. Coinbase Chief Legal Officer Paul Grewal expressed gratitude for the court's careful ruling.