Crypto Exchange Coinbase Is Suing the SEC and FDIC—Here's Why
Crypto exchange Coinbase (COIN) sued U.S. financial regulators Thursday, saying they failed to disclose information about past investigations into the cryptocurrency market and attempted to block the crypto industry from access to banking services.
Coinbase, partnering with consultancy firm History Associates Inc., filed lawsuits Thursday in the U.S. District Court for the District of Columbia against the Securities and Exchange Commission (SEC) and the Federal Deposit Insurance Corp. (FDIC), also accusing the agencies of withholding crucial information and not responding to Coinbase's Freedom of Information Act (FOIA) requests.
The complaints allege that regulators, including the SEC, FDIC, and the Federal Reserve Board, have used various tools to stifle the digital-asset industry for nearly two years.
The unanswered FOIA requests sought information on the SEC's view of Ethereum's transition to a proof-of-stake consensus mechanism, as well as details from closed investigations into individuals and entities associated with the crypto market, according to the complaints. The SEC's denials of these documents, which have been refused citing potential harm to active enforcement proceedings, have been criticized by Coinbase as obstructive and contrary to FOIA’s intent.
«Financial regulators have used multiple tools at their disposal to try to cripple the digital-asset industry,» Coinbase Chief Legal Officer Paul Grewal posted Thursday on X."@SECGov has claimed sweeping authority, but refuses to provide any rules, let alone consistent or coherent ones. While @FDICgov pressured financial institutions to cut off the industry from the banking system."
Coinbase's complaint against the FDIC also addresses «pause letters» sent
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