Coinbase has made a bold move by announcing that it will be launching lawsuits against the US Securities and Exchange Commission (SEC) and the Federal Deposit Insurance Corporation (FDIC) in relation to a Freedom of Information Act (FOIA) dispute. The cryptocurrency exchange giant has been unsuccessful in obtaining the information it requested through FOIA, prompting the decision to take legal action.
Coinbase had enlisted the help of consultancy firm History Associates Incorporated to assist in retrieving records from the SEC and FDIC. Unfortunately, both requests were denied, leading History Associates to file lawsuits against both agencies in an attempt to compel them to release the requested documents. Coinbase is named as a related party in the suits.
One of the FOIA requests made by History Associates on behalf of Coinbase sought documents from the SEC regarding their views on Ethereum and the status of ETH. The SEC initially claimed that they could not locate any information related to the request. However, upon appeal, they admitted that the documents existed but were protected under exemption rules. Coinbase and History Associates argue that these exemptions should not apply and are seeking the court’s intervention to compel the SEC to disclose the information.
In a separate FOIA request, Coinbase and History Associates sought documents pertaining to an investigation involving Enigma MPC and Etherdelta founder Zachary Coburn. Both parties had received cease and desist orders for alleged securities violations. The request was denied, despite the investigation having concluded in settlements years ago. Coinbase and History Associates claim that the SEC’s refusal violates the agency’s FOIA obligations.
The third legal battle involving the SEC and Coinbase is the result of Coinbase suing the securities regulator after its formal petition for rulemaking was denied in 2022. The case is currently in the US Court of Appeals for the Third Circuit. Additionally, the SEC sued Coinbase in June 2023 for alleged securities violations, a case that has progressed to the discovery phase after Coinbase’s attempt to dismiss the lawsuit was mostly unsuccessful.
The decision to pursue legal action against both the SEC and FDIC signifies Coinbase’s determination to obtain the requested information and shed light on the agencies’ actions. This move is poised to have significant implications for the cryptocurrency industry and the transparency of regulatory bodies.