Coinbase Files Lawsuits Against SEC and FDIC for FOIA Non-Compliance in Relation to Ethereum 2.0 and Proof of Stake Transition
Coinbase, one of the largest cryptocurrency exchanges, has filed lawsuits against the United States Securities and Exchange Commission (SEC) and the Federal Deposit Insurance Corporation (FDIC).
The lawsuits, filed on June 27, allege that these two federal agencies have not complied with Freedom of Information Act (FOIA) requests. These requests were made to obtain information about the transition of Ethereum to a Proof of Stake consensus mechanism.
The FOIA requests by Coinbase aimed to obtain information about the SEC’s position regarding Ethereum, specifically its transition to Ethereum 2.0 and Proof of Stake mechanism.
Coinbase also sought documents related to previous investigations involving Zachary Coburn and Enigma MPC through its consulting firm, History Associates Inc. In the legal documents, History Associates claims that for nearly two years, a range of federal financial regulators, including the SEC, FDIC, and the Federal Reserve Board of Governors, have been using regulatory tools to attempt to paralyze the crypto industry.
Coinbase accuses the regulatory agencies of conducting a coordinated attempt to exclude crypto companies from the banking sector. The actions of the SEC and FDIC are described as a concerted effort to cut digital asset firms off from essential banking services.
The legal documents reveal that the SEC has refused to disclose records from completed investigations, which Coinbase interprets as a deliberate obstruction to understanding the legal framework behind the agency’s enforcement actions.
This lawsuit is part of a larger conflict between Coinbase and US regulators, as described by History Associates in the legal documents. Coinbase’s Chief Legal Officer, Paul Grewal, has expressed on the social network X (formerly Twitter) that financial regulators have been using multiple tools to try to paralyze the crypto industry, criticizing what he sees as a lack of transparency and ineffective regulation.
History Associates’ legal documents highlight the broader debate on how digital assets should be regulated in the United States, as Coinbase advocates for clearer guidelines. The ongoing conflicts between Coinbase and regulators reflect the growing tensions in the cryptocurrency sector, where companies seek to navigate an increasingly complex and often hostile regulatory landscape.
