Coinbase Sues SEC for Noncompliance
27 Jun, 2024 ● Crypto News
Coinbase has initiated legal action against the United States Securities and Exchange Commission (SEC) and the Federal Deposit Insurance Corporation (FDIC), alleging non-compliance with Freedom of Information Act (FOIA) requests, according to a report by FoxBusiness.
Filed on June 27 in the U.S. District Court for the District of Columbia, the lawsuits claim that these federal agencies have deliberately sought to exclude the cryptocurrency industry from the banking sector.
The FOIA requests directed at the SEC were particularly focused on obtaining the agency’s perspective regarding the transition of Ethereum to a proof-of-stake (PoS) consensus mechanism.
Coinbase sought information about Ethereum 2.0 and past inquiries involving individuals such as Zachary Coburn and Enigma MPC, with the assistance of its consultant firm, History Associates Inc.
History Associates expressed in the legal documents:
“For nearly two years, a wide array of federal financial regulators—including the Securities and Exchange Commission (“SEC”), the FDIC, and the Federal Reserve Board — have used every regulatory tool at their disposal to try to cripple the digital-asset industry.
This FOIA lawsuit seeks to bring to light the FDIC’s role in that unlawful scheme.”
Coinbase argues in its complaints that these regulatory efforts are part of a larger campaign to undermine the cryptocurrency industry.
The lawsuits depict the actions of the SEC and FDIC as a "coordinated attempt to cut off digital-asset firms from essential banking services."
Coinbase interprets the SEC’s refusal to disclose records from closed investigations as a deliberate hindrance to understanding the legal basis of the agency’s enforcement actions.
This litigation is described as part of "Coinbase’s ongoing conflict with U.S. regulators" in the documents drafted by History Associates.
Paul Grewal, Coinbase’s Chief Legal Officer, voiced his frustrations in an X thread:
“Financial regulators have used multiple tools at their disposal to try to cripple the digital-asset industry. [...] This is no way to regulate. And this is no way to operate a transparent government.”
Furthermore, History Associates points out in the legal filings the ongoing broader debate concerning how digital assets should be regulated in the U.S., as Coinbase pushes for clearer regulatory guidelines.
Sources:
https://cointelegraph.com/news/coinbase-sues-sec-fdic-foia-requests
https://www.foxbusiness.com/markets/coinbase-sues-sec-fdic-information-relating-crypto-regulation
https://x.com/EleanorTerrett/status/1806297449268379889
