Coinbase Sues SEC and FDIC over FOIA Compliance Violation, Questions Ether Security Classification

Coinbase has sued the Securities and Exchange Commission (SEC) and Federal Deposit Insurance Corporation (FDIC) over their reluctance to release crucial information covered by the Freedom of Information Act (FOIA).

Coinbase has filed lawsuits against the Securities and Exchange Commission (SEC) and the Federal Deposit Insurance Corporation (FDIC) for their alleged failure to disclose crucial information as per the Freedom of Information Act (FOIA). The crypto exchange filed the suits in the District Court for the District of Columbia on 27 June.

The legal dispute stems from these agencies' efforts to exclude the crypto industry from the broader financial ecosystem, according to the filed complaints. Fox Business journalist Eleanor Terret reported on the development, writing on Twitter, “Coinbase is looking to shed light on what it describes as a ‘deliberate and concerted effort by the SECGov, @FDICgov, and other financial regulators’ to pressure banks to deny crypto firms access to the federal banking system.”

Coinbase alleges that these agencies are using their authority to prevent crypto assets and innovations from accessing banking services, thereby stifling the growth and wider acceptance of crypto businesses. Paul Grewal, Coinbase's chief legal officer, stated on Twitter, “Financial regulators have used multiple tools at their disposal to try to cripple the digital-asset industry. SECGov has claimed sweeping authority, but refuses to provide any rules, let alone consistent or coherent ones.”

Regarding the FDIC, he added, “While FDICgov pressured financial institutions to cut off the industry from the banking system.” And then, on the FOIA compliance violation, “Today we filed lawsuits under the Freedom of Information Act for requests we made over a year ago seeking important information to which we, and the public, are entitled.”

Coinbase's lawsuit also questions the SEC's classification of Ether as a security and its subsequent pursuit of Ethereum and service providers in the US offering services involving Ether. Several businesses, including Coinbase, received Wells Notices from the SEC for listing the asset and offering Ether-related services.

History Associates, the consulting firm behind Enigma MPC—a crypto firm sued by the SEC for offering unregistered securities through its native ENG tokens—joined Coinbase in the legal battle. The firm filed a separate lawsuit against the FDIC, stating, “This FOIA lawsuit seeks to bring to light the FDIC’s role in that unlawful scheme.” The suit also alleges that the FDIC and the SEC are共同努力“扼殺數字資產產業”。

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