Coinbase Suing SEC, FDIC Over FOIA Noncompliance

Key Takeaways:

1. Coinbase filed lawsuits, suing the SEC and FDIC for noncompliance with FOIA requests regarding Ethereum’s transition to proof-of-stake.
2. The lawsuits allege that the SEC and FDIC are using regulatory tools to harm the digital-asset industry.
3. Coinbase seeks transparency and clearer guidelines on digital asset regulation from U.S. regulators.
4. The legal action highlights ongoing conflicts between Coinbase and federal financial regulators over cryptocurrency regulations.

YEREVAN (CoinChapter.com) — On June 27, Coinbase filed lawsuits, suing the United States Securities and Exchange Commission (SEC) and the Federal Deposit Insurance Corporation (FDIC). The lawsuits, reported by FoxBusiness, claim that these agencies did not comply with Freedom of Information Act (FOIA) requests submitted to the U.S. District Court for the District of Columbia.

Coinbase Seeks SEC Records on Ethereum’s PoS Shift

Coinbase’s FOIA requests sought information on the SEC’s view of Ethereum’s transition to a proof-of-stake (PoS) consensus mechanism. Coinbase asked for records related to Ethereum 2.0 and past investigations involving figures like Zachary Coburn and Enigma MPC. These requests were handled through the consulting firm History Associates Inc.

The legal documents state:

“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 harm the digital-asset industry. This FOIA lawsuit aims to bring to light the FDIC’s role in that unlawful scheme.”

Lawsuits Accuse the Unlawful Blocking of Crypto Firms

Notably, Coinbase’s lawsuits accuse the SEC and FDIC of a plan to cut off digital-asset firms from banking services. According to the legal filings, the SEC’s refusal to release records from concluded investigations is seen as an attempt to block understanding the legal framework behind its enforcement actions.

Paul Grewal, Coinbase’s chief legal officer, stated in an X:

“Financial regulators have used multiple tools at their disposal to try to harm the digital-asset industry. […] This is no way to regulate. And this is no way to operate a transparent government.”

History Associates Inc. notes that this legal action is part of Coinbase’s ongoing conflict with U.S. regulators. Above all, the company is pushing for clearer guidelines on how digital assets should be regulated in the U.S. The debate over digital asset regulation continues to be a major issue within the financial sector.