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News

Coinbase Legal Action Released Adds to Tensions with the SEC Lawsuit

June 27, 2024 - Around 3 mins mins to read

Key Points:

  • Coinbase sues the SEC and FDIC to obtain internal records on crypto regulation after being denied FOIA requests.
  • Coinbase legal action follows its denied FOIA requests for information on SEC investigations and FDIC “pause letters.”
  • Coinbase is also involved in other legal disputes with the SEC over rulemaking and securities violations.
Coinbase has launched a legal offensive against the U.S. Securities and Exchange Commission (SEC) and the Federal Deposit Insurance Corporation (FDIC).
Coinbase Legal Action Released Adds to Tensions with the SEC Lawsuit

Coinbase Sues SEC and FDIC Over FOIA Request Denials

The cryptocurrency exchange filed lawsuits in Washington, D.C., district court, accusing both agencies of failing to comply with Freedom of Information Act (FOIA) requests. Coinbase legal action is seeking court intervention to compel the agencies to release internal records related to their approaches to crypto regulation.

The lawsuits, filed Thursday, aim to obtain documents to expose what Coinbase describes as a “deliberate and concerted effort by the SEC, FDIC, and other financial regulators” to restrict crypto firms’ access to the federal banking system.

Coinbase legal action follows its attempts to retrieve information via FOIA about three SEC investigations into crypto firms and entrepreneurs between 2018 and 2024, including a recently closed probe into the Ethereum blockchain network. Coinbase also requested details on “pause letters” sent by the FDIC from March 2022 to May 2023, instructing banks to halt crypto-related activities until further guidance was provided on associated risks.

Despite being legally entitled to the information, Coinbase says it was denied access by both the SEC and FDIC. In 2023, Coinbase hired consultancy firm History Associates Incorporated to assist in obtaining these records. History Associates is now suing the agencies on Coinbase’s behalf after both requests were denied.

Coinbase Legal Action Challenges SEC on Multiple Fronts

The SEC initially claimed it couldn’t locate any information responsive to Coinbase’s request for documents on Ethereum and ETH status but later cited exemption rules after an appeal by History Associates. Similarly, the FDIC denied the FOIA request for “pause letters,” which was confirmed by its Office of Inspector General.

Coinbase legal actions with the SEC include a lawsuit for rulemaking denial in 2022 and an ongoing case for alleged securities violations. Coinbase argues that the SEC’s and FDIC’s refusals to release documents violate FOIA obligations and seeks court orders to enforce disclosure.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.