BREAKING: Coinbase sues SEC and FDIC

Coinbase has filed lawsuits against the U.S. Securities and Exchange Commission (SEC) and the Federal Deposit Insurance Corporation (FDIC) for failing to comply with Freedom of Information Act (FOIA) requests.

The lawsuits, filed in the U.S. District Court for the District of Columbia, seek to compel these agencies to provide the requested information.

Charges against regulators

Coinbase claims that federal financial regulators are undermining the crypto industry. The company claims that agencies like the SEC and FDIC have used their powers to cripple the digital asset sector. The complaint against the FDIC alleges that the agency was part of an illegal scheme to undermine the industry.

Details of the FOIA requests

Coinbase has sought information from the SEC regarding its position on Etherium’s transition to a consensual proof-of-stake (PoS) mechanism and past investigations involving Zachary Coburn and Enigma MPC, which settled with the SEC years ago. The Commission denied those requests, citing potential harm to ongoing enforcement actions.

The complaint against the FDIC refers to letters sent to financial institutions asking them to stop crypto-related activities. Coinbase alleges that these letters were part of an effort to completely halt crypto activities. The FDIC has refused to disclose the letters, citing the protection of sensitive information about the banks involved.

Coinbase’s regulatory push

Coinbase has clashed with regulators before, including a lawsuit against the SEC in April 2023 demanding clear regulatory guidelines for the crypto industry. The exchange first petitioned the SEC for formal rulemaking in July 2022, requesting specific regulations for crypto. However, the SEC has continued to enforce existing securities laws against crypto platforms, leading to ongoing tensions.