The post Coinbase Sues SEC, FDIC for Crypto Regulation Information appeared on BitcoinEthereumNews.com.

Crypto giant Coinbase has taken legal action against the U.S. Securities and Exchange Commission (SEC) and the Federal Deposit Insurance Corporation (FDIC), demanding compliance with Freedom of Information Act (FOIA) requests. These lawsuits aim to shed light on regulatory measures affecting the cryptocurrency industry. Coinbase’s Legal Battle for Transparency Coinbase, with the help of consultant firm History Associates Inc., has filed two lawsuits in the U.S. District Court for the District of Columbia. The suits accuse federal financial regulators of deliberately hindering the cryptocurrency sector’s integration into traditional banking. The FOIA Requests and Allegations The crux of Coinbase’s complaint revolves around FOIA requests submitted to the SEC and FDIC. These requests sought information on various aspects of crypto regulation: Ether Regulation: Coinbase requested details on how the SEC views ether, especially its shift to a proof-of-stake consensus mechanism. The SEC’s denial of this request and subsequent appeal led to the current legal confrontation. Closed Investigations: History Associates asked for records related to investigations into Zachary Coburn and Enigma MPC. Despite these cases being settled years ago, the SEC withheld documents, citing potential harm to ongoing enforcement activities. Specific Complaints Against the FDIC Coinbase’s lawsuit against the FDIC focuses on “pause letters” issued to financial institutions, which allegedly discouraged crypto-related activities. These letters, part of what Coinbase calls Operation Choke Point 2.0, are seen as efforts to isolate the digital-asset industry from necessary banking services. The Broader Impact on the Crypto Industry Coinbase’s legal actions are not unprecedented. The crypto exchange previously sued the SEC in April 2023, seeking clarity on regulations for the crypto industry. This ongoing friction highlights the broader conflict between regulatory bodies and the burgeoning digital-asset sector. The Need for Clear Regulations Coinbase has long advocated for clear, formal rulemaking to guide the crypto industry. Despite repeated…

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Filed under: News - @ June 27, 2024 8:26 pm