Coinbase vs. SEC: Legal Battle Over Cryptocurrency Transparency

Coinbase, in its ongoing battle with financial regulators, has taken a bold step. According to Fox Business, the company has filed a lawsuit in a Washington, D.C. district court against the U.S. Securities and Exchange Commission (SEC) and the Federal Deposit Insurance Corporation (FDIC), seeking access to internal documents related to cryptocurrency regulation.

The legal action stems from Coinbase’s attempt to obtain information through the Freedom of Information Act (FOIA). These requests pertain to the SEC’s investigations into cryptocurrency companies and entrepreneurs between 2018 and 2024, including its inquiry into the Ethereum blockchain network. Additionally, Coinbase seeks detailed information about the FDIC’s “pause letters” sent to banks, advising them to halt cryptocurrency-related activities until further guidance is provided.

Despite Coinbase’s legal right under the FOIA, both agencies have denied the requested information. The exchange argues that this refusal hampers its understanding of the coordinated efforts by financial regulators to restrict basic banking services for cryptocurrency companies.

A Coinbase spokesperson emphasized the company’s demand for transparency from the federal government, stating:

“Over the years, financial regulatory agencies, including the SEC, FDIC, and Federal Reserve, have used every means to try to weaken the digital asset industry. We insist on federal transparency.”

This legal move occurs against the backdrop of ongoing tension between Coinbase and the SEC. In 2023, the regulatory agency accused Coinbase of operating as an unregistered securities exchange, broker, and clearing agency. Coinbase maintains that the SEC has failed to provide clear guidance on how securities laws apply to digital assets.