Coinbase sues SEC and FDIC for clarity on crypto rules
06/27/2024 23:49Cryptocurrency exchange Coinbase takes legal action against U.S. regulators for transparency and fair regulation.
Cryptocurrency exchange Coinbase has filed lawsuits against the U.S. Securities and Exchange Commission (SEC) and the Federal Deposit Insurance Corporation (FDIC) on Thursday, alleging unfair targeting and opaque practices.
The legal challenges, lodged in the U.S. District Court for the District of Columbia, accuse the agencies of overregulation and failing to respond to Freedom of Information Act (FOIA) requests.
The exchange’s legal action seeks to counter what it views as a concerted effort by the SEC and FDIC to undermine the cryptocurrency sector by restricting access to banking services and withholding information.
Coinbase has criticized the SEC for using privacy claims to conceal its regulatory methods, particularly concerning Ethereum’s proof-of-stake transition and other crypto entities.
The FDIC is similarly under fire for advising banks to halt the expansion of crypto-related services through “pause letters,” a tactic Coinbase likens to the controversial “Operation Choke Point.”
Coinbase’s dispute with the SEC also includes a previous lawsuit from April 2023, where the exchange demanded a definitive stance on crypto-specific regulations.
Despite discussions since July 2022, the SEC has yet to provide clear guidelines, opting to enforce existing securities laws that Coinbase argues are ill-suited for cryptocurrencies.