Coinbase sues SEC, FDIC over FOIA noncompliance

Josh O"Sullivan11 hours agoCoinbase sues SEC, FDIC over FOIA noncomplianceCoinbase’s lawsuits target the SEC and FDIC for alleged noncompliance with FOIA requests regarding Ethereum’s proof-of-stake transition.1338 Total views40 Total sharesListen to article 0:00Breaking newsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksCoinbase has filed lawsuits against the United States Securities and Exchange Commission and the Federal Deposit Insurance Corporation (FDIC).

According to a FoxBusiness report, the lawsuits, filed on June 27, allege that the SEC and FDIC failed to comply with Freedom of Information Act (FOIA) requests submitted to the U.S. District Court for the District of Columbia.

Coinbases’ lawsuits accuse the federal agencies of attempting to exclude the crypto industry from the banking sector.Source: Eleanor Terrett

Related:Coinbase opts out of ASI token migration as $7.5B merger proceedsFOIA requests

The FOIA requests aimed at the SEC sought information on the federal agency’s view on Ethereum, specifically the blockchain’s shift to a proof-of-stake (PoS) consensus mechanism. 

Coinbase asked for records related to Ethereum 2.0 and previous investigations involving Zachary Coburn and Enigma MPC through its consultant firm, History Associates Inc. 

According to the legal documents, History Associates stated:“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.”

Related: US gov’t sends 3,940 Bitcoin to Coinbase exchangeCoinbase’s allegations

Coinbase’s complaints argue that the regulatory actions against the crypto industry are part of a broader effort to undermine it.

The lawsuits describe the SEC’s and FDIC’s actions as “a coordinated attempt to cut off digital-asset firms from essential banking services.” 

According to the legal documents, the SEC’s refusal to release records from concluded investigations is seen by Coinbase as:“A deliberate obstruction to understanding the legal framework behind the agency’s enforcement actions.”

Related: Bitcoin price wobbles at $61K as US gov sends 4K BTC to CoinbaseOngoing regulatory disputes

This latest legal action is part of what History Associates describes in the legal documents as “Coinbase’s ongoing conflict with U.S. regulators.”

Paul Grewal, Coinbase’s chief legal officer, stated 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.”Source: Paul Grewal

According to the legal documents, History Associate highlights the “broader debate over how digital assets should be regulated in the U.S.” as Coinbase advocates for clearer guidelines.

Magazine: El Salvador’s national Bitcoin chief has been orange-pilling Argentina# Coinbase# Law# Proof-of-Stake# Ethereum# SEC# RegulationAdd reaction