A federal appeals court says the U.S. Securities and Exchange Commission needs to better explain why it turned down a request from Coinbase to develop regulations to cover the booming crypto asset sector — although the judges stopped short of reversing the agency's decision.

The SEC provided insufficient justification for rejecting Coinbase Inc.‘s request for rules specific to the cryptocurrency industry, the Third Circuit said Monday.

Coinbase triumphs in a pivotal legal battle with the SEC. The court grants a writ of mandamus in favor of Coinbase’s 2022 petition. SEC’s denial

The U.S. Securities and Exchange Commission (SEC) has been put on blast by a federal appeals court, which has demanded the agency justify its decision to block Coinbase’s 2022 petition for clear crypto regulations.