Coinbase files two lawsuits against the US SEC and the FDIC for not complying with FOIA requests; one of the FOIA requests is about how the SEC views ether
instead of waiting to be picked on, Coinbase deals with the bully in the best way possible, a direct confrontation. LinkedIn: David Brill : Coinbase Sues SEC and FDIC Over Alleged Lack of Transparency in Crypto Regulation — Coinbase is suing the U.S. Securities and Exchange Commission … Forums: r/ethtrader : Coinbase sues SEC, FDIC over FOIA requests, says federal regulators trying to cut out crypto
The BlockSarah Wynn
Context & Ripple Effects
Coinbase’s transparency claims extend an earlier effort to force a regulatory response to its petition for clearer crypto rules, including its court bid to compel an SEC answer. The SEC had argued that Coinbase could not require guidance on its preferred timetable, setting up the current dispute as a fight over both process and disclosure.
The requests’ focus on the SEC’s view of ether matters because Coinbase has also framed its broader defense around what constitutes an investment transaction on an exchange, as seen in its opening argument in the SEC case.
First-order effects
Coinbase shifts part of its regulatory conflict into records-access litigation, requiring the SEC and FDIC to defend their handling of the FOIA requests rather than only their substantive crypto positions.
The requested records could clarify, if produced, how the SEC internally approached ether and banking-agency interactions with crypto firms.
Second-order effects
Other crypto businesses and their legal advocates gain a potential route to seek agency records when formal rulemaking or direct requests do not yield clarity.
The SEC and FDIC may face greater pressure to document and explain their records-disclosure decisions, while Coinbase can use any disclosures to inform its wider legal and policy strategy.
Third-order effects
The episode points to crypto regulation being contested through administrative-process tools—petitions, disclosure requests, and litigation—as well as through enforcement cases.
If such challenges repeatedly produce useful records or judicial scrutiny, transparency obligations could become a more consequential constraint on how financial regulators pursue contested emerging markets.
The trend: Crypto companies are increasingly contesting regulatory uncertainty through procedural litigation aimed at extracting clearer agency positions and records.
Financial regulators have used multiple tools at their disposal to try to cripple the digital-asset industry. @SECGov has claimed sweeping authority, but refuses to provide any rules, let alone consistent or coherent ones. While @FDICgov pressured financial institutions to cut …
We asked the SEC for documents about closed investigations to shed light on how the SEC views its newfound, sweeping (and unlawful) authority. One of those investigations, which only recently closed, focused on ETH, which the SEC publicly announced is not a security in 2018. And
We asked the FDIC for the letters they sent to financial institutions asking them to indefinitely “pause” crypto-related activities, an action that the FDIC's own Office of Inspector General criticized for creating a “risk that the FDIC would inadvertently limit financial
We are hopefully near the end of an era of unprecedented politicization of our regulatory system - where the rules mean nothing, the public is not owed any fair process, and political objectives drive key decisions. To heal from the abuse of the last several years requires
The calculus has changed now for Coinbase watching the odds of a Trump Presidency increasing. I have to imagine they feel emboldened to keep pushing ahead of the election and get more concessions from the financial plumbing of the US government.
WOW. Coinbase sued the FDIC (and SEC) alleging a concerted campaign to de-bank crypto startups. They use the Operation Choke Point 2.0 term a number of times in the complaint. [image]
Transparency and a clear process to ensure that the markets, investors, and the broader public understand the view of law are cornerstones of what makes the U.S. so great. This is NOT optional. @iampaulgrewal said it best 👇: “. . .[T]his is no way to operate a transparent
Very glad Coinbase is doing this. Every crypto startup in the US faces banking issues due to the FDICs unconstitutional pressure campaign. Time to get to the bottom of this!
The US is under regulated in the Crypto industry Exchanges/Custodians rely on MTLs/MSB licensing instead of a clear regulatory regime This is the rare instance where an industry is begging for regulation only to find a regulator that is unclear at best, usually combative
Awesome to see Coinbase go on the offensive here. The insane amount of crap regulators have thrown at crypto has hindered the US industry with a chilling effect. Now it's time to push back and let the judiciary put these folks in their place. 🫡
Probably good time to flag that Biden admin has nominated another crypto-skeptic for FDIC Chair, and is re-nominating the currently most-anti-crypto SEC commissioner (hint: it's not actually Gary). Hearing will be July 11 in Senate Banking.
🚨Based Coinbase goes on the offensive and sues the SEC. The SEC has been relentlessly bullying Crypto companies and providing virtually zero compliance guidance — instead of waiting to be picked on, Coinbase deals with the bully in the best way possible, a direct confrontation.