Coinbase Sues SEC and FDIC, Criticizes Regulatory Attacks on the Crypto Industry

Coinbase has filed a lawsuit against the SEC and FDIC, accusing them of violating the Freedom of Information Act by failing to disclose information about their actions concerning cryptocurrencies.

This marks the third legal battle between Coinbase and the SEC, highlighting ongoing tensions over unclear cryptocurrency regulations.

Coinbase claims these regulatory actions aim to undermine the crypto industry and restrict its access to banking services.

Allegations of Violating the Freedom of Information Act

It has come to light that the major U.S. cryptocurrency exchange, Coinbase, has filed a lawsuit against the U.S. Securities and Exchange Commission (SEC) and the Federal Deposit Insurance Corporation (FDIC).

This lawsuit, conducted in conjunction with the consulting firm History Associates Incorporated, claims that “the SEC and FDIC failed to comply with a Freedom of Information Act (FOIA) request filed in the United States District Court for the District of Columbia.”

The FOIA is a law designed to ensure public access to government-held information, promoting transparency and accountability within government agencies, and allowing citizens to monitor governmental activities.

Coinbase had filed a FOIA request at the end of 2023, seeking information regarding actions and investigations conducted by the SEC and FDIC concerning cryptocurrencies.

The agencies did not respond to these requests, prompting Coinbase to claim that they are violating the FOIA.

Currently, the SEC and Coinbase are engaged in two ongoing legal battles: one where the SEC has sued Coinbase for securities law violations and another where Coinbase is suing the SEC for clearer rules on cryptocurrency.

This new lawsuit brings the total number of legal disputes to three.

Criticism of Regulatory Attempts to Suppress Cryptocurrencies

The SEC has been criticized for continuing to file lawsuits against cryptocurrency-related companies without clarifying regulations regarding cryptocurrencies.

Coinbase, along with other crypto firms and industry insiders, has voiced disapproval of such actions.

Coinbase reiterated that “the SEC has not clarified what constitutes a security,” and pointed out inconsistencies in the SEC’s past statements regarding the securities nature of cryptocurrencies.

Furthermore, Coinbase accused the regulatory actions of attempting to weaken the crypto industry, asserting that the actions of the SEC and FDIC are part of a coordinated effort to separate crypto firms from banking services.

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