Recently, Coinbase, the leading US cryptocurrency exchange, has filed lawsuits against the Securities and Exchange Commission (SEC) and the Federal Deposit Insurance Corporation (FDIC) to access internal records. The aim is to uncover what Coinbase describes as efforts to pressure banks into restricting crypto firms’ access to the banking system.
Coinbase Seeks Clarity on Regulatory Landscape
Coinbase asserts that regulators like the SEC, FDIC, and Federal Reserve Board have impeded the digital asset industry. The exchange demands transparency and clear guidelines on cryptocurrency regulations from the federal government.
These legal actions come after Coinbase’s previous attempts to obtain information through the Freedom of Information Act (FOIA) regarding SEC investigations into crypto firms. The exchange aims to grasp the SEC’s changing stance on digital assets over the years.
Coinbase also seeks details on “pause letters” issued by the FDIC to banks requesting a temporary suspension of crypto-related activities. Despite being entitled to the information under FOIA, Coinbase claims denial of access by the SEC and FDIC.
Challenges Faced by the Industry
Coinbase alleges that the SEC and FDIC have rejected access to information citing concerns over ongoing investigations and enforcement actions against other entities. The exchange refers to “Operation Chokepoint 2.0”, highlighting perceived efforts to restrict crypto firms’ access to banking services.
These lawsuits by Coinbase aim to reveal if top officials at the SEC and FDIC have employed tactics to hinder the digital assets industry’s access to the banking system. The lack of consistent guidance from the SEC on applying securities laws to digital assets is seen as a challenge for industry participants.
While Coinbase hopes these legal actions will shed light on the SEC’s enforcement actions against them, delays may arise due to a backlog of FOIA requests reported by the Government Accountability Office.
As Coinbase continues its legal battle, the crypto industry anticipates the lawsuits’ outcomes, which could influence regulatory frameworks and enhance transparency on crypto regulations.
Featured image from DALL-E, chart from TradingView.com
