Coinbase sues SEC in ‘reverse UNO’ move on crypto transparency - reports

06/27/2024 20:15
Coinbase sues SEC in ‘reverse UNO’ move on crypto transparency - reports

Coinbase takes legal action against SEC and FDIC, seeking access to internal documents related to crypto regulation.

Coinbase sues SEC in ‘reverse UNO’ move on crypto transparency – reports Coinbase sues SEC in ‘reverse UNO’ move on crypto transparency – reports 45 seconds ago · 2 min read

Exchange claims SEC and FDIC unlawfully denied access to documents on crypto regulation.

2 min read

Updated: Jun. 27, 2024 at 1:52 pm UTC

Coinbase sues SEC in ‘reverse UNO’ move on crypto transparency – reports

Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.

Coinbase has taken a bold step in its ongoing struggle with financial regulators. As Fox Business reported, the company has filed lawsuits against both the Securities and Exchange Commission (SEC) and the Federal Deposit Insurance Corporation (FDIC) in a Washington, DC district court, seeking access to internal documents related to crypto regulation.

According to Fox Business, the legal action stems from Coinbase’s attempts to obtain information through Freedom of Information Act (FOIA) requests. These requests pertained to SEC investigations into crypto firms and entrepreneurs between 2018 and 2024, including a probe into the Ethereum blockchain network. Additionally, Coinbase sought details about “pause letters” reportedly sent by the FDIC to banks, asking them to halt crypto-related activities pending further guidance.

Coinbase reportedly argues both agencies denied access to the requested information despite the company’s legal entitlement under FOIA. The exchange contends that this denial prevents it from understanding what it perceives as coordinated efforts by financial regulators to restrict crypto firms’ access to essential banking services.

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

“For years, financial regulators, including the SEC, FDIC, and Federal Reserve Board, have used every tool at their disposal to try to cripple the digital asset industry. We demand transparency from our federal government.”

This legal move occurs against the backdrop of ongoing tensions between Coinbase and the SEC. The regulator filed charges against Coinbase in 2023, alleging the company operated as an unregistered securities exchange, broker, and clearing agency. Coinbase has consistently maintained that the SEC has failed to provide clear guidance on how securities laws apply to digital assets.

Coinbase’s lawsuits spotlight the ongoing tension between innovation in the digital asset space and regulatory oversight. The outcome of these legal proceedings could have significant implications for the future of crypto regulation in the United States, potentially shaping the relationship between the industry and financial regulators.

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