As a seasoned crypto investor with a keen interest in the regulatory landscape of the digital asset industry, I find Coinbase’s decision to sue the SEC and FDIC over FOIA compliance and their perceived efforts to obstruct the growth of crypto businesses, particularly noteworthy.
Coinbase, the well-known cryptocurrency exchange, has taken legal action against both the Securities and Exchange Commission (SEC) and Federal Deposit Insurance Corporation (FDIC). The companies are being sued due to their refusal to disclose essential information requested under the Freedom of Information Act (FOIA). These lawsuits were initiated in the District Court for the District of Columbia on 27 June.
The SEC, along with other financial regulatory agencies, have taken extraordinary measures to keep the crypto industry isolated from the broader financial system. This revelation was recently brought to light by Fox Business journalist Eleanor Terret through her report on X, where she disclosed that @coinbase is aiming to expose what it refers to as a “determined and coordinated campaign” by the SEC, FDIC, and other regulatory bodies to persuade banks into denying access to the federal banking system for crypto companies.
Coinbase believes that regulatory agencies are using their power to hinder the progress of crypto assets and related innovations by denying them access to banking services. This impedes the growth of crypto businesses and limits wider acceptance. According to Coinbase’s legal officer, Paul Grewal, on X, “Regulators have employed various means to undermine the digital-asset sector. The Securities and Exchange Commission (SEC) asserts extensive jurisdiction but fails to provide clear guidelines, let alone consistent or comprehensible ones.”
“The FDIC put pressure on financial institutions to sever ties with the industry, as I’ve mentioned before. And regarding transparency, we’ve recently filed lawsuits under the Freedom of Information Act. These requests were made over a year ago, and the information we seek is crucial not just for us, but for the public as well.”
As an analyst, I’d rephrase that as follows: I question the SEC’s rationale for labeling Ether as a security and targeting Ethereum and US-based service providers dealing with Ether. Several businesses have received Wells Notices from the SEC for listing this digital asset and providing 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—has joined Coinbase in the battle. It brought a lawsuit of its own against the FDIC, stating, “This FOIA lawsuit seeks to bring to light the FDIC’s role in that unlawful scheme.” The suit also mentioned that the FDIC and the SEC do everything in their power to “cripple the digital-asset industry.”
Image by Sergei Tokmakov, Esq. https://Terms.Law from Pixabay
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2024-06-30 21:31