Coinbase Exchange Challenges SEC With Demand for Transparency on Cost of Crypto Crackdown
Key Points:
- Coinbase exchange seeks SEC records on spending for cryptocurrency investigations and enforcement actions over the past four years.
- The SEC previously pursued lawsuits against major crypto firms like Coinbase, Binance, and Kraken, arguing digital assets should be regulated as securities.
Coinbase exchange has filed a Freedom of Information Act (FOIA) request seeking records of the U.S. Securities and Exchange Commission’s (SEC) spending on cryptocurrency-related investigations and enforcement actions.
The request, submitted through contractor History Associates, aims to uncover financial details related to the SEC’s oversight of the digital asset industry over the past four years.
Coinbase Exchange Seeks Transparency on SEC’s Crypto Enforcement Costs
The FOIA request asks for the total costs associated with investigations and enforcement actions, a list of targeted companies, the number of employees and contractors involved, and financial details regarding the SEC’s previous leadership’s crypto enforcement unit.
Coinbase Chief Legal Officer Paul Grewal emphasized the need for transparency, questioning the extent of resources allocated to these regulatory efforts.
Grewal also expressed interest in details about the now-defunct “Crypto Assets and Cyber Unit” within the SEC’s Enforcement Division, including its budget and personnel expenses.
SEC’s Legal Battles with Crypto Firms
The SEC has ramped up scrutiny of the cryptocurrency industry under the Biden administration, initiating legal action against several firms, including Coinbase, Binance, and Kraken.
Regulators have argued that digital assets offered by these platforms should be classified as securities and registered accordingly. Coinbase exchange, which went public in 2021, has repeatedly challenged the SEC’s stance, accusing the agency of stifling innovation and harming the U.S. economy.
A federal district court declined to dismiss the SEC’s lawsuit against Coinbase in March 2024, prompting the exchange to appeal the ruling in January.
Meanwhile, the SEC’s cases against Binance and Kraken remain ongoing, although the agency has requested a pause in its lawsuit against Binance. The SEC recently also concluded its investigation into Gemini without pursuing enforcement charges.
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