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News

Coinbase Exchange Challenges SEC With Demand for Transparency on Cost of Crypto Crackdown

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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 Challenges SEC With Demand for Transparency on Cost of Crypto Crackdown
Coinbase Exchange Challenges SEC With Demand for Transparency on Cost of Crypto Crackdown 2

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.

https://twitter.com/iampaulgrewal/status/1896554146842685529

Grewal also expressed interest in details about the now-defunct β€œCrypto 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.

DISCLAIMER:Β 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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Avatar of John Kojo Kumi

John Kojo Kumi

03 March 2025, 15:03:23 GMT +0000

John Kojo Kumi is a cryptocurrency researcher and writer specializing in emerging startups, tokenomics, and market dynamics within the blockchain ecosystem. With years of experience in crypto journalism and blockchain research, he provides in-depth coverage of decentralized finance (DeFi), NFTs, and Web3 innovations. He holds a Bachelor of Arts in Geography and Rural Development from Kwame Nkrumah University of Science and Technology, Kumasi, bringing a multidisciplinary perspective to the evolving digital asset space. As a Crypto News Writer, he tracks and reports on industry trends, while his role as a Registrar at the Commission on Human Rights and Administrative Justice reflects his commitment to governance and transparency. His expertise spans content strategy, SEO optimization, and technical research, enabling him to craft insightful, data-driven analyses. Passionate about blockchain’s transformative potential, he strives to equip readers with the knowledge to navigate the complexities of digital assets and decentralized technologies.

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