Coinbase, a publicly traded crypto exchange, has filed two civil lawsuits against the U.S. Securities and Exchange Commission (SEC) and the Federal Deposit Insurance Corporation (FDIC) through an intermediary.
Coinbase is asking for access to documents that might explain how the regulators decided which crypto tokens to classify as securities.
Coinbase Sues SEC and FDIC Over Alleged Crypto Suppression
Coinbase has initiated a new legal battle with the SEC and FDIC. The exchange filed two lawsuits in a Washington, D.C., district court, seeking to uncover what it describes as a coordinated effort by these agencies to exclude crypto firms from the U.S. financial system. Coinbase claims it has been denied access to documents that should be available under the Freedom of Information Act (FOIA).
“Financial regulators have used multiple tools at their disposal to try to cripple the digital-asset industry. The SEC has claimed sweeping authority but refuses to provide any rules, let alone consistent or coherent ones,” said Coinbase Chief Legal Officer Paul Grewal in a post on X (formerly Twitter).
Source: X
At the SEC, Coinbase’s intermediary, History Associates Inc., is seeking communications in three closed cases to understand how the commission decided which digital assets qualify as securities, including Ethereum (ETH). This lawsuit follows the SEC’s recent closure of its investigation into “Ethereum 2.0” as a potential security.
“We asked the SEC for documents about closed investigations to shed light on how the SEC views its newfound, sweeping (and unlawful) authority,” continued Grewal. “One of those investigations, which only recently closed, focused on ETH, which the SEC publicly announced is not a security in 2018. And the other investigations have been closed for years. But the SEC stonewalled our requests.”
At the FDIC, Coinbase is seeking copies of “Pause Letters” sent to financial institutions, asking them to indefinitely halt all “crypto-related activities.” These letters were mentioned in a report from the FDIC’s Office of Inspector General (OIG) but have never been made public.
Coinbase argues that the letters are “part of a deliberate and concerted effort by the FDIC and other financial regulators to pressure financial institutions into cutting off digital-asset firms from the banking system.”
Ongoing Legal Battles Between Coinbase and U.S. Regulators
This legal challenge is just one of many regulatory disputes between Coinbase and U.S. financial regulators.
Coinbase is currently involved in a court battle with the SEC over allegations that it allows Americans to trade unregistered securities on its platform.
Additionally, Coinbase has taken the SEC to court seeking a court order to compel the regulator to provide clearer guidelines on how it applies securities laws to digital assets.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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