Coinbase Sues SEC and FDIC
Date: 2024-06-28 Author: Gabriel Deangelo Categories: BUSINESS
Lawsuit against Regulators
Crypto exchange Coinbase has filed a lawsuit against the US Securities and Exchange Commission (SEC) and the Federal Deposit Insurance Corporation (FDIC), accusing them of refusing to provide information under Freedom of Information Act (FOIA) requests. This was announced by the company's general counsel, Paul Grewal.
Coinbase has asked regulators to obtain documents in a number of cases, including the investigation into "Ethereum 2.0" and two already closed SEC cases - Enigma MPC and Ether Delta. In addition, the exchange requested information from the FDIC regarding recommendations made to certain financial institutions regarding restrictions on expansion in the cryptocurrency sector.
Charges Addressed by SEC and FDIC
Paul Grewal noted that the refusal of the SEC and FDIC to provide the required information is a violation of federal law. “The SEC claims broad authority but refuses to clarify any rules. At the same time, the FDIC is putting pressure on financial institutions to cut off the cryptocurrency industry from the banking system,” Grewal said.
In its statement, Coinbase accused the SEC of inconsistency and lack of clear rules, which creates obstacles to the development of the cryptocurrency industry. Grewal stressed that such behavior is unacceptable for a transparent government and demanded a more responsible approach from financial regulators.
Previous Coinbase Activities
Coinbase previously sent a petition to the SEC asking for clarification of the regulator's powers, but has not yet received a response. The exchange also asked the court to force the agency to respond to the request. The move comes as part of Coinbase's broader efforts to bring transparency and fairness to the regulation of the cryptocurrency sector.
Coinbase continues to fight for the rights of the cryptocurrency industry and demand greater transparency and consistency from regulators. The lawsuit against the SEC and FDIC highlights the importance of clear rules and open dialogue between regulators and market participants.
