Judge Stephanos Bibas of the U.S. Court of Appeals for the Third Circuit said that the Securities and Exchange Commission's (SEC) denial of Coinbase's petition for regulatory clarity lacked sufficient explanation. The decision was issued on January 13, 2025.
"The SEC denied Coinbase's rulemaking petition in a single paragraph," said Bibas. "The SEC lacks discretion to formulate policy on digital assets."
According to Justia, the U.S. Court of Appeals for the Third Circuit, led by Judge Bibas, reviewed the SEC’s denial of Coinbase’s request for regulatory clarity on digital asset rules. On September 23, 2024, Coinbase argued that current securities laws do not account for the unique characteristics of cryptocurrencies, creating compliance challenges. On January 13, 2025, the court remanded the case, requiring the SEC to reconsider its decision and provide a more thorough explanation.
According to The Hill, Gary Gensler became chair of the U.S. Securities and Exchange Commission in 2021. His tenure has focused on market transparency and investor protections, with the SEC pursuing enforcement actions against cryptocurrency firms for alleged securities law violations. Gensler has also overseen the implementation of various market reforms and increased regulatory oversight.
On his X account, Gensler announced on November 21, 2024, that he will step down as chair of the U.S. Securities and Exchange Commission on January 20, 2025. Gensler’s tenure began in 2021 and focused on regulatory oversight, market transparency, and enforcement actions against cryptocurrency firms. His departure marks the end of a period of SEC leadership during a time of evolving financial and digital asset markets.
Stephanos Bibas serves as a judge on the U.S. Court of Appeals for the Third Circuit. He was nominated by President Donald J. Trump in 2017 and confirmed by the Senate on November 2, 2017. Bibas previously held academic positions at the University of Pennsylvania Law School where he directed the Supreme Court Clinic and taught law and criminology.
According to The Wall Street Journal, the U.S. Securities and Exchange Commission enforces securities laws and regulates stock and options exchanges. In fiscal year 2024, it collected a record $8.2 billion in monetary penalties—an increase compared to prior years—reflecting enforcement actions during Chair Gary Gensler’s tenure.