The Rangers midfielder has been handed a three-game ban, with a further seven matches suspended, and fined £7,500 for betting on 10 games involving the club he was registered with, including on three occasions where he backed his side not to win.
The SFA censured the 28-year-old for betting on another 147 fixtures over a six-year period. Black selected Rangers to draw their Third Division fixture with East Stirlingshire, a game he scored in as the Gers won 4-2, as part of an accumulator bet, and McCoist is standing by his under-fire star.
He said: "He didn't bet on us to get beaten and having seen the bet, I don't have an issue with it all.
"It's a nothing bet and the money put on was nothing. That would indicate to me that if he is guilty of anything, it is of stupidity. He is certainly not guilty of anything else.
"There is a big difference. Guys get accused of match fixing and things like that, and while what he did was wrong, I don't have a big problem with it and it has been dealt with."
Black will miss the visit of Arbroath on SPFL League One duty this afternoon and next weekend's trip to Forfar as well as the midweek Ramsdens Cup quarter-final against Queen of the South.
He is the first player in Scotland to be punished for breaking rules on betting, which prohibit all players, managers and club officials from punting on any fixture worldwide.
McCoist said: "He's got his three-match ban, seven matches suspended, and a hefty fine. We need to take it on the chin and move on.
"Myself, Craig Mather and Ian have discussed it. It's an internal matter and disciplinary action has been taken within the club and it will remain internal.
"I don't have a problem at all with [picking him]. I have seen every bet that he's made and if our fans need reassured, in my opinion, Ian Black is as committed to this football club as he always has been and will do his best for it when he is selected again."
Black attracted criticism from Rangers fans for his displays during their Third Division title success last season and his betting charge has infuriated large swathes of the support.
But McCoist is hopeful they will stick by the midfielder during the latest controversy in his career.
He said: "I think the fans have been great with him. I don't know what they will be like now.
"But I am reassuring the fans that Ian Black is totally committed to Rangers.
"I don't know [if he should apologise to the fans]. That's one for Ian to think about. It's not for me to say."
While Black will now face the consequences of his actions, it remains to be seen if other players are hauled in front of the Hampden hierarchy.
McCoist produced a dossier of names of people involved in Scottish football that have bet on matches and the Gers boss has again called for clarity on the regulations.
He said: "I would suggest the players and staff have to find out what the rules are and be crystal clear on that.
"It seems to me the vast majority of football players and staff, and I include myself in that, don't know.
"I'm not saying ignorance is an excuse - because it's not - but at the same time if there's anything good to come out of this case it's that we'll all know where we stand."
Meanwhile, Rangers have announced the signing of veteran shot stopper Steve Simonsen on a season-long deal.
It follows keeper Scott Gallacher going on loan to Airdrieonians for three months as Andrew Mitchell heads for Annan on a similar deal.