The Coinbase team filed lawsuits under the Freedom of Information Act, seeking transparency from the SEC and FDIC regarding their actions against the crypto industry. They criticised the regulators for lacking clear rules and obstructing innovation, demanding better regulatory practices.
Coinbase chief legal officer Paul Grewal said that the US financial regulators have used various tools to try to undermine the digital asset industry. They specifically pointed out that the United States Securities and Exchange Commission (SEC) has claimed extensive authority but has not provided any clear or consistent rules for the same sector. Additionally, he said that the US FDIC pressured financial institutions to cut off the industry from the banking system.
Grewal confirmed that they filed lawsuits under the Freedom of Information Act for requests made over a year ago to obtain important information. Through the suit, the Coinbase legal team asked the SEC for documents about closed investigations to understand the SEC’s view on its broad authority, including an investigation into ETH, which the SEC had declared not to be a security in 2018. However, the SEC refused to provide these documents.
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. While @FDICgov pressured financial institutions to cut…
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— paulgrewal.eth (@iampaulgrewal) June 27, 2024
Similarly, Coinbase also requested letters from the FDIC sent to financial institutions, instructing them to pause crypto-related activities. The FDIC’s Office of Inspector General had criticised these actions for potentially limiting innovation and growth in the crypto space, but the FDIC also refused to provide these documents.
The Coinbase team criticised this lack of transparency and effective regulation, demanding better practices from financial regulators. They expressed appreciation for the Court’s attention to these issues and looked forward to sharing updates in the future.
Coinbase stock price
Currently, the Coinbase exchange is facing significant legal challenges due to a suit filed by the US SEC against its business.
The current trading price of Coinbase ($COIN) stock is $222, which is 9.3% down over the last 30 days.
Read also: Kraken co-founder donates $1M ETH to support Donald Trump to favour crypto adoption in the US
Coinbase Sues SEC and FDIC for Transparency on Crypto Regulations
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