The U.S. Securities and Exchange Commission told an appeals Court late Monday that the crypto exchange Coinbase had not proven to the regulator the need for a new regulatory structure for the digital assets industry.

The federal regulator has asked the court not to accept a Coinbase request for more regulatory guidance tailored specifically to the digital assets industry. The SEC said it hasn’t yet decided on the petition, but “continues” to review the filing.

Coinbase submitted its first petition to the SEC on July 20, 2022. The regulator was asked to provide guidance regarding digital assets. The crypto trading platform filed a Mandamus Petition with the U.S. Court of Appeals, Third Circuit last month. It asked the court to force the regulator, during an escalating litigation, to respond to its petition. Coinbase also filed a response in the same week to an SEC Wells notice.

In its response on Monday, the SEC stated that the company expected a response in less than one year. The agency, however, has in the past taken as long as five to ten years to respond.

The SEC’s filing stated that “as Coinbase has made clear, evaluating the different paths it suggests can be a complicated undertaking.” “Yet Coinbase submitted its rulemaking petition less than ten months back, supplemented the petition in some areas less than three months later, and attempted to supplement the record once again just weeks ago.”

SEC received over 1,600 “form letter comments” as well as eight original comments. Coinbase submitted three of these.

The federal securities regulator noted that it is not prohibited from enforcing current regulations if new rules are considered or existing regulations are amended.

The SEC stated that “Coinbase attempts to end run the precedent which forecloses relief in these circumstances, by arguing the Commission only needs to memorialize its denial Coinbase’s request – a mistakenly asserted decision Coinbase has already made,” The SEC said that Coinbase had not received a final response to its petition. Coinbase’s argument was based on an incorrect belief that recent enforcement actions by the Commission indicate that it has decided not to engage in regulation.

Parikshit Miishra is the editor.