The US Securities and Exchange Commission has been ordered by a US court to respond expeditiously, after a complaint from the cryptocurrency exchange Coinbase that the SEC needed to explain how it applies securities laws to digital assets.

CoinDesk has reported that the Third Circuit Court of Appeals has said the SEC must file its response within 10 days.

Coinbase may then file a response seven days thereafter. Coinbase has argued that the SEC provides insufficient regulatory guidance for US companies operating in the crypto sector, saying the commission should at least say how the rules are to should be adapted to regulate digital assets.

The crypto exchange referred to a 2022 petition asking for formal rule making within the digital assets sector, to which the SEC is yet to respond.

The 10-day deadline ordered refers to the SEC's requirement to provide a legal basis for why it has not responded to the petition, CoinDesk said.

Meanwhile, revenue from Coinbase’s international crypto currency derivatives exchange in Bermuda could reach $200 million a year, an expert has said.

John Todaro is principal, crypto and blockchain research, at Needham and Company, the New York-based independent investment bank and asset management firm.

In a note, according to the Seeking Alpha investment community website, Mr Todaro said the new exchange could be a $30 million to $200 million a year revenue opportunity.

That assumes a two to three basis-point take rate and 2023 as an example year, the note said.

At $30 million a year, it would represent the fourth largest crypto native offshore crypto derivatives exchange, and at $200 million a year, it would be the third largest, Seeking Alpha said.

Regulatory uncertainty in the United States prompted Coinbase to launch the Bermudian-based exchange, shortly after receiving approval to operate from the Bermuda Monetary Authority.

Coinbase Bermuda Limited holds a Class F digital assets business licence under the Digital Assets Business Act.

The new exchange launched by America’s largest crypto exchange will enable institutional users based in eligible jurisdictions outside of the US to trade perpetual futures.

Perpetual futures accounted for nearly 75 per cent of global crypto trading volume in 2022, creating highly liquid markets and offering traders additional versatility in their trading strategies.