A research firm hired by Coinbase has filed a lawsuit against the U.S. Securities and Exchange Commission (SEC) and the Federal Deposit Insurance Corp. (FDIC). The lawsuit accuses the agencies of not complying with open-records laws by withholding documents related to their views on cryptocurrencies. Coinbase, a prominent U.S. digital assets exchange, claims that the SEC and FDIC have failed to provide documents that should be accessible under the Freedom of Information Act (FOIA).
In its legal challenge, Coinbase seeks to obtain written communications from the SEC on the classification of digital assets as securities, including Ethereum’s ether (ETH). The exchange also demands copies of ‘pause letters’ sent by the FDIC to financial institutions advising them to halt cryptocurrency-related activities. These requests come in the wake of the SEC’s recent closure of its review on the status of ‘Ethereum 2.0’ as a potential security.
Additionally, Coinbase is pursuing documents related to past cases involving Zachary Coburn, the founder of EtherDelta, and Enigma MPC, a blockchain startup. Both cases involved the SEC’s rulings on the classification of digital assets as securities.
Paul Grewal, Coinbase’s Chief Legal Officer, expressed frustration with the SEC’s refusal to provide information on these closed investigations. The SEC cited FOIA exemption 7A, which protects law enforcement efforts, as the reason for denying access to the requested documents.
History Associates Inc., representing Coinbase, has also filed a lawsuit against the FDIC, alleging that the agency’s actions to pressure financial institutions to cut off services to digital asset firms are part of a coordinated effort by financial regulators.
This legal dispute adds to the ongoing battles between Coinbase and U.S. regulatory agencies. Coinbase is currently contesting accusations by the SEC that it operates an unregistered securities exchange. The outcome of these legal challenges could have significant implications for the cryptocurrency industry in the United States.
Notably, Coinbase has previously supported legal actions against U.S. government entities. In 2022, the company backed a lawsuit challenging the U.S. Treasury Department’s sanctions on the crypto mixer Tornado Cash. Although the initial lawsuit was unsuccessful in federal court, the plaintiffs have filed an appeal.