Coinbase asks the appeals court to instruct the SEC to begin drafting cryptocurrency rules

ChainCatcher news, according to The Block, Coinbase stated in its opening brief submitted to the Third Circuit Court of Appeals that the appellate court should instruct the U.S. Securities and Exchange Commission (SEC) to initiate a "long-delayed rulemaking process."

Coinbase argued that the SEC violated the Administrative Procedure Act by failing to engage in rulemaking and not providing a detailed explanation for rejecting Coinbase's rulemaking petition. The Act outlines how federal agencies should formulate and publish rules.

"The SEC does not have the statutory authority to extend the existing securities regime to digital assets. However, if the SEC insists on proceeding without congressional authorization, then decisions must be made and enforced through prospective rulemaking," Coinbase stated.