Coinbase sues SEC and FDIC: Failure to cooperate in providing documents in accordance with the law and trying to squeeze out the encryption industry

Coinbase sues SEC and FDIC

1. Yesterday (27th), the American exchange Coinbase filed a lawsuit against the U.S. Securities and Exchange Commission (SEC) and the Federal Deposit Insurance Corporation (FDIC), accusing the two institutions of failing to comply with the law since 2023. Complying with the Freedom of Information Act (FOIA), Coinbase has repeatedly declined requests to disclose relevant documents. Coinbase angrily criticized federal agencies as taking the lead in squeezing out the crypto industry.
2. Coinbase sues SEC and FDIC

• Coinbase filed separate lawsuits against the SEC and FDIC on Thursday, accusing the two agencies of failing to comply with the Freedom of Information Act.
• It is reported that Coinbase hired the consulting firm History Associates last year to submit FOIA requests to the SEC and FDIC for access to relevant documents in accordance with the Freedom of Information Act; however, multiple requests were rejected.

3. SEC has repeatedly failed to cooperate in providing legal documents

• The application to disclose Ethereum documents was rejected

  • Last year, History Associates requested the SEC’s views on Ethereum and ETH, as well as Ethereum’s shift to a proof-of-stake consensus mechanism (PoS), the relevant copies and records retained by the SEC.
  • The SEC denied the request in October 2023, claiming that it could not find or identify any information that would respond to the request, the indictment reads. However, after appealing the decision, the SEC said the documents were protected by immunity rules.
  • History Associates and Coinbase responded that the above exemption rules do not apply to this situation and requested the SEC to release this information through the current FOIA lawsuit.

• SEC: It will affect the progress of law enforcement procedures

  • In addition, History Associates also requested the disclosure of records of two completed investigations, namely, relevant information of Etherdelta founder Zachary Coburn and Enigma MPC.
  • Conceivably, the SEC rejected these requests on the grounds that it might cause harm to ongoing related enforcement actions.

4. FDIC is killing the crypto industry

• Regarding the FDIC, History Associates accused the agency of trying to weaken the crypto industry by issuing "crypto business suspension letters" to multiple banks.
• Coinbase said that these letters can be said to be part of "ChokePoint 2.0", which is an attempt to exclude digital asset companies from necessary banking services.
• History Associates was also rejected by the FDIC when it made a request to disclose the relevant letters: Revealing the contents of the letters would involve important information about a specific bank and would damage the privacy and trust between financial and regulatory agencies.

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