Judge Stephanos Bibas of the U.S. Court of Appeals for the Third Circuit has called on the Securities and Exchange Commission (SEC) to provide a more detailed explanation for its rejection of Coinbase's request for clearer cryptocurrency regulations. The decision was issued on January 13.
"The SEC insists that its old rules apply to the novel crypto market but refuses to spell out how," said Bibas. "The SEC repeatedly sues crypto companies for not complying with the law, yet it will not tell them how to comply."
According to Justia, this decision follows Coinbase's petition for regulatory guidance on digital assets, which the SEC had previously denied. After hearing arguments on September 23, 2024, concerning compliance challenges under existing securities laws, the court found the SEC's rationale insufficient and remanded the case, requiring a more comprehensive explanation from the SEC.
Social Capital Markets reports that in 2024, the SEC imposed $4.68 billion in crypto-related fines, marking a significant increase from $150.26 million in 2023. This surge was largely attributed to a $4.5 billion settlement with Terraform Labs, one of the largest crypto enforcement actions to date. Since 2013, over $7.42 billion in fines related to cryptocurrency have been collected by the SEC, with 63% occurring in 2024 alone.
Reuters reported that in October 2023, TD Bank's U.S. arm pleaded guilty to conspiracy to commit money laundering and agreed to pay a $3 billion fine while facing an asset cap and compliance monitors after its system facilitated laundering up to $670 million from narcotics sales. A December arrest of former employee Leonardo Ayala underscored ongoing issues as he was charged with aiding a laundering network through fraudulent debit card issuance.
Bibas is noted as a former law professor at the University of Pennsylvania Carey Law School. He graduated summa cum laude from Columbia University and holds degrees from Oxford and Yale Law School. His professional background includes clerking for Justice Anthony Kennedy and serving as an assistant U.S. attorney; he has authored two books and over 60 scholarly articles.
The New York Post reports that the SEC levied $390 million in fines against 26 Wall Street investment firms for unauthorized use of text and WhatsApp messages. Companies penalized include Ameriprise Financial, Edward Jones, LPL Financial, and Raymond James—each paying $50 million—while BNY’s Pershing unit incurred a $40 million penalty. Since 2021, efforts against platforms like WhatsApp, Signal, and Apple Messages by firms such as JPMorgan and Goldman Sachs have resulted in over $2 billion in fines.
