Coinbase has filed a lawsuit against the U.S. Securities and Exchange Commission (SEC) and the Federal Deposit Insurance Corporation (FDIC) for non-com with the Freedom of Information Act (FOIA) requirements. The lawsuit, filed in the District Court for the District of Columbia, to compel these agencies to provide the requested information.
Allegations Against Regulatory Agencies
base claims that federal financial regulatory agencies are undermining the cryptocurrency industry. The company alleges that such as the SEC and FDIC have abused their powers to weaken the digital asset industry The complaint against FDIC states that it is part of an unlawful plan to undermine this.
Further Reading:
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Details on FOIA Requests
Coinbase’s requests to SEC for information about its stance on transitionEthereum Proof-of-Stake (PoS) consensus mechanism and past investigations involvingary Coburn and Enigma MPC (settled with SEC years ago). These requests were by these institutions citing potential harm to ongoing enforcement actions.
The complaint against FDIC sent to financial institutions requesting them to cease activities related to cryptocurrencies. Coinbase asserts that these letters are part of a concerted effort to shut down crypto activities altogether. The FDIC refused public disclosure of these letters on grounds of safeguarding sensitive information about banking.
Regulatory Pressure Faced by Coinbase
Coinbase had previously clashed with regulatory agencies, including a lawsuit against SEC in 2023 seeking clear regulatory guidance for the cryptocurrency industry. In January2022, it was their first time requesting SEC formally draft rules specific to cryptocurrency regulations; however, despite this request the U.S. Securities and Exchange Commission continued enforcing existing securities laws against crypto platforms causing ongoing tension.
