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A federal appeals court took on elements of the SEC v. Coinbase legal battle yesterday, but we’ll need a bit more time to determine the decision’s exact impact.

The SEC sued Coinbase in June 2023 for alleged securities violations. It later denied the crypto exchange’s petition for rulemaking that December. The petition essentially argued that the SEC’s strategy of using existing securities laws to enforce crypto regulation is “unworkable.”

The agency’s response was a single paragraph, the court pointed out. Basically the SEC said it disagreed, noting it “has discretion…

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