Coinbase and the U.S. securities regulator faced off in a federal appeals court in Philadelphia on Monday as the cryptocurrency exchange presses the agency to create new rules for digital assets.

The SEC’s reasons for denying a Coinbase Inc. petition for rules governing the cryptocurrency industry were “sparse” and “pretty close to vacuous,” a Third Circuit judge told an attorney for the agency at oral argument Monday.

The US Third Circuit Court of Appeals will on Monday hear Coinbase's arguments against the Securities and Exchange's (SEC) denial of its petition to propose new rules for cryptocurrency regulation.

Judges in the Third Circuit Court of Appeals had tough questions for the Securities and Exchange Commission today in the lawsuit where the crypto exchange Coinbase has demanded new rulemaking for the blockchain industry.

Coinbase Global (COIN) asks an appeals court to overturn SEC's denial of its petition for new crypto rules, saying the current framework is 'impossible.'