The Coinbase team has filed lawsuits under the Freedom of Information Act, seeking transparency from the SEC and the FDIC regarding their actions against the crypto industry. They criticized regulators for lacking clear rules and hindering innovation, and demanded better regulatory practices.
Coinbase Chief Legal Officer Paul Grewal said US financial regulators have used several tools to undermine the digital asset industry. They specifically pointed out that the US Securities and Exchange Commission (SEC) has claimed extensive powers but has not established clear or consistent rules for the same sector. In addition, he said the U.S. FDIC was pressuring financial institutions to cut the industry off from the banking system.
Grewal confirmed that archived lawsuits under the Freedom of Information Act over requests made more than a year ago to obtain material information. Through the lawsuit, Coinbase’s legal team asked the SEC for documents on closed investigations to understand the SEC’s position on its broad authority, including an investigation into ETH, which the SEC had declared not a security in 2018. However, the SEC declined to provide these documents.
Similarly, Coinbase also requested letters from the FDIC be sent to financial institutions directing them to pause crypto-related activities. The FDIC’s Office of Inspector General had criticized these actions as potentially limiting innovation and growth in the crypto space, but the FDIC also declined to provide these documents.
The Coinbase team criticized this lack of transparency and effective regulation and demanded better practices from financial regulators. They expressed appreciation for the Court’s attention to these issues and looked forward to sharing updates in the future.
Coinbase stock price
Currently, the Coinbase exchange is facing significant legal challenges following a lawsuit filed against its operations by the US SEC.
The current trading price of Coinbase ($COIN) stock is $222, which is 9.3% lower than the last 30 days.
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