Coinbase asks appeals court to direct SEC to start drafting cryptocurrency rules

Coinbase said in opening arguments to the 3rd Circuit Court of Appeals on Monday that the appeals court should direct the SEC to begin a "long overdue rulemaking process." Coinbase said the SEC violated the Administrative Procedure Act because it did not conduct a rulemaking and did not elaborate on why it rejected Coinbase’s rulemaking petition. The act regulates how federal agencies develop and issue rules. "The SEC does not have the legal authority to extend the current securities regime to digital assets. But if the SEC insists on moving forward without congressional authorization, the decision must be made and enforced through forward-looking rulemaking." Next, the SEC will file an objection in April, and Coinbase will then have a few weeks to respond. If the 3rd Circuit Court of Appeals decides to hold oral arguments, it will have to wait until late summer or early fall. The Third Circuit Court of Appeals could rule in late 2024 or 2025, according to people familiar with the matter. (The Block)