Coinbase sues the SEC and FDIC for allegedly unlawfully denying access to documents on crypto regulation, aiming for federal transparency.
Trade assertions Unlawfully denying access to documents on crypto regulation were the SEC and FDIC.
Coinbase has made a daring move in its continuous battle with financial regulators. According to Fox Business, the corporation has sued the Federal Deposit Insurance Corporation (FDIC) and the Securities and Exchange Commission (SEC) in a Washington, DC district court to access internal cryptocurrency regulation records.
Fox Business claims that Coinbase’s requests to gather information through the Freedom of Information Act (FOIA) led to legal action. These inquiries concerned SEC investigations from 2018 to 2024 into cryptocurrency companies and operators, including an exploration of the Ethereum network. Coinbase also asked for information regarding “pause letters” that the FDIC allegedly sent to banks requesting that they cease all crypto-related activity until further instructions were received.
According to reports, Coinbase claims that despite the company’s legal entitlement under the FOIA, both agencies refused to grant access to the sought material. The exchange claims that because of this denial, it cannot comprehend what it believes to be coordinated efforts by financial regulators to limit cryptocurrency firms’ access to necessary banking services.
A Coinbase representative underlined the company’s request for federal government openness, stating to Fox Business:
“For years, financial regulators, including the SEC, FDIC, and Federal Reserve Board, have used every tool at their disposal to try to cripple the digital asset industry. We demand transparency from our federal government.”
This legal action occurs in continuous hostilities between the SEC and Coinbase. In 2023, the regulatory body brought legal action against Coinbase, claiming it functioned as an unlicensed broker, clearing agency, and securities exchange. Coinbase has continuously argued that the SEC needs to issue clear guidelines regarding the applicability of securities laws to digital assets.
The continuous conflict between regulatory monitoring and innovation in the digital asset market is highlighted by Coinbase’s lawsuits. The verdict in these court cases may dramatically affect how cryptocurrency legislation develops in the US and influence how financial authorities and industry players interact.
