Coinbase Takes Legal Action Against SEC and FDIC
Coinbase CLO Paul Grewal has announced the filing of lawsuits against the Securities and Exchange Commission (SEC) and the Federal Deposit Insurance Corporation (FDIC). Grewal mentioned in his tweet that these legal actions were initiated under the Freedom of Information Act (FOIA).
The company seeks to compel the agencies to release crucial information that could shed light on their approach to regulating the cryptocurrency industry.
Key points:
- Coinbase files FOIA lawsuits against the SEC and FDIC for stonewalling information requests.
- The exchange seeks documents on closed SEC investigations, including one focused on Ethereum.
- Coinbase demands transparency regarding the FDIC’s actions to limit crypto activities in financial institutions.
- Grewal criticizes the current regulatory approach as detrimental to innovation and growth in the crypto space.
Grewal’s announcement expresses the exchange’s frustration with what it sees as a concerted effort by financial regulators to stifle the crypto industry.
Also read: US Govt Moves $240M Worth Of Silk Road Bitcoin To Coinbase: BTC Price Reacts
The CLO accuses the SEC of claiming sweeping authority over cryptocurrencies while refusing to provide clear or consistent rules. Similarly, he alleges that the FDIC has pressured financial institutions to sever ties with the crypto industry.
Coinbase’s lawsuit stems from FOIA requests
The lawsuits stem from FOIA requests made by Coinbase over a year ago. One key area of inquiry involves the SEC’s investigations into Ethereum.
Regarding the FDIC, Coinbase is seeking access to letters sent by the agency to financial institutions, requesting them to “pause” crypto-related activities indefinitely. Grewal points out that this action was criticized by the FDIC’s own Office of Inspector General.
Grewal criticized the SEC’s actions and described them as “no way to regulate” and “no way to operate a transparent government.”
