"A U.S. Court ordered the SEC to explain its denial of Coinbase's request for crypto-specific regulations, calling the agency's stance 'arbitrary and capricious.' The ruling was made by a three-judge panel from the U.S. Court of Appeals for the Third Circuit, which sided partially with Coinbase. Coinbase's Chief Legal Officer, Paul Grewal, appreciated the court's decision, emphasizing the need for a clearer regulatory framework. The ruling adds pressure on the SEC, which is facing multiple enforcement actions against crypto firms while criticism mounts over its regulatory approach."