Coinbase has taken legal action against the United States Securities and Exchange Commission (SEC) and the Federal Deposit Insurance Corporation (FDIC). As reported by FoxBusiness on June 27, the lawsuits claim that both agencies failed to comply with Freedom of Information Act (FOIA) requests submitted to the U.S. District Court for the District of Columbia.
The lawsuits from Coinbase assert that the SEC and FDIC have attempted to exclude the cryptocurrency industry from the banking sector. This move is depicted as a coordinated effort to restrict digital asset firms’ access to essential banking services.
In the FOIA requests directed at the SEC, Coinbase sought information on the agency’s stance regarding Ethereum, particularly its transition to a proof-of-stake (PoS) consensus mechanism under Ethereum 2.0. The company also requested records related to prior investigations involving Zachary Coburn and Enigma MPC through its consultant, History Associates Inc.
According to documents submitted in court, History Associates emphasized the SEC’s refusal to disclose findings from completed investigations, which Coinbase interprets as part of a broader regulatory strategy against the crypto industry.
This legal challenge is described in legal documents as part of Coinbase’s ongoing conflict with U.S. regulators over how digital assets should be regulated. Paul Grewal, Coinbase’s chief legal officer, underscored this perspective, noting the importance of establishing clearer guidelines for digital asset regulation in the United States.
The lawsuits mark Coinbase’s effort to push back against what it perceives as regulatory overreach that threatens the cryptocurrency sector’s integration into traditional financial systems.