Coinbase initiated legal actions against the Securities and Exchange Commission (SEC) and the Federal Deposit Insurance Corporation (FDIC) following its inability to obtain requested records from these government agencies under the Freedom of Information Act (FOIA), according to court documents filed on Thursday.
Coinbase Files Lawsuits Against SEC, FDIC Alleging Document Obstruction
In official documents, History Associates, a records management firm hired by Coinbase in 2023, is listed as the plaintiff.
On behalf of the crypto exchange, History Associates utilized the Freedom of Information Act (FOIA) to request federal records related to the SEC’s classification of Ethereum (ETH) in July 2023.
In October of that year, the SEC rejected the request, citing an inability to locate or identify the specified documents.
Despite an appeal filed by History Associates in January 2024, the SEC again denied access, asserting that the records were protected.
The complaint highlighted that History Associates also sought “pause letters” from the FDIC, urging banks engaged in crypto services to suspend all digital asset operations.
“The SEC’s recent, ambiguous, and evolving interpretation of securities laws denies regulated parties the clarity required by due process, leaving them uncertain whether their activities could be deemed securities transactions and subjected to potential investigation, prosecution, and retrospective penalties,” the complaint stated. “This uncertainty is compelling entrepreneurs to relocate their digital asset businesses overseas.”
Coinbase’s Long History Of Crypto Regulation Pushback
Coinbase and the SEC have a turbulent relationship and are currently involved in two other prominent legal disputes.
In 2022, Coinbase initiated a lawsuit against the SEC under the leadership of Gary Gensler, seeking to compel the agency to establish a clear regulatory framework for the blockchain sector.
The following year, the SEC filed a counter lawsuit against Coinbase, alleging violations of U.S. securities law. Both cases are currently active in the legal system.
Meanwhile, Coinbase’s Chief Legal Officer Paul Grewal criticized the SEC’s approach to cryptocurrencies as “unlawful,” particularly its practice of regulating through enforcement rather than clear regulatory guidelines.
“Financial regulators have employed various tactics to undermine the digital asset industry,” Grewal remarked on X Thursday morning. “@SECGov has asserted broad authority but has failed to articulate any rules, let alone consistent or coherent ones. Meanwhile, @FDICgov has pressured financial institutions to sever ties with the industry.”
As of now, the SEC has not publicly responded to the ongoing litigation.
