Coinbase’s legal dispute with the SEC: Impact on cryptocurrency regulation and investor protection

The U.S. Court of Appeals ruled that the SEC rejected Coinbase’s application to formulate clear cryptocurrency rules in 2022 “arbitrary and capricious”, forcing the SEC to defend its position. The SEC then dismissed the civil lawsuit against Coinbase, marking a shift in the direction of establishing a clearer regulatory framework. This legal progress highlights the ongoing tensions between cryptocurrency innovation and regulation, urging investors to prioritize diversified investments and compliance-oriented platforms.