PANews reported on January 14 that according to CoinDesk, the U.S. Court of Appeals for the Third Circuit ruled that the U.S. Securities and Exchange Commission (SEC) should fully explain its decision to refuse to establish clear rules for the cryptocurrency industry. This ruling partially supports Coinbase's appeal, believing that the SEC's position on crypto assets is "arbitrary and capricious." This ruling occurred in the last week of SEC Chairman Gary Gensler's term, which may provide an opportunity for incoming Republican Chairman Paul Atkins to adjust the direction of cryptocurrency regulation. The court emphasized that the SEC needs to make a clear statement rather than continue to avoid rule-making issues, especially in the context of the agency's controversial crypto regulatory policy based on law enforcement in recent years.

Previously, the SEC had suffered consecutive legal setbacks in Grayscale's Bitcoin spot ETF application and Coinbase-related cases. The court considered the SEC's reasons for rejection "conclusive and lacking sufficient basis" and warned it not to give "bad explanations" again. Coinbase Chief Legal Officer Paul Grewal thanked the court for its prudent ruling.