Coinbase has taken a bold step by suing the SEC and FDIC in a bid for greater transparency in crypto regulation, aimed at safeguarding the interests of Bitcoin and XRP investors.
The SEC has been criticized for its lack of clear guidance on laws governing digital asset securities. In an effort to gain access to crucial documents outlining the policies of the Securities and Exchange Commission (SEC) and the Federal Deposit Insurance Corporation (FDIC) regarding cryptocurrency regulation, Coinbase has initiated legal action.
This move is part of Coinbase’s ongoing efforts to protect investors in Bitcoin and XRP, while also pushing for transparency from financial regulators.
In a recent development, Coinbase has filed lawsuits in Washington, D.C., seeking access to internal documents that could expose what the company refers to as a coordinated effort by the SEC, FDIC, and other regulators to dissuade banks from providing services to crypto companies.
A spokesperson for Coinbase stated, “Financial regulators, including the SEC, FDIC, and the Federal Reserve Board, have been using every means at their disposal to hinder the digital asset industry. We demand transparency from the government to ensure fair treatment for all, including Bitcoin and XRP investors.”
The legal action follows Coinbase’s attempts to obtain information through the Freedom of Information Act (FOIA) on three SEC investigations into cryptocurrency companies and entrepreneurs between 2018 and 2024. Additionally, Coinbase sought details on “pause letters” sent by the FDIC to banks, urging them to halt cryptocurrency-related activities due to perceived risks.
Despite being entitled to this information under FOIA, Coinbase alleges that the SEC and FDIC have refused to provide it. The company claims that both agencies have withheld information on grounds similar to those underlying “Operation Chokepoint 2.0,” a term used by the cryptocurrency community to describe a supposed effort by financial authorities to cut off essential banking services to crypto companies.
Coinbase is also seeking clarification on the SEC’s enforcement action against the exchange, accusing it of violating securities regulations by offering potentially unregistered securities in the form of cryptocurrency. The company argues that the lack of a unified perspective on how securities rules apply to digital assets is harming industry players.
Despite regulatory challenges, Coinbase has demonstrated its commitment to expanding cryptocurrency trading opportunities by introducing pre-launch trading for early access to altcoins. Subscribe to our newsletter for more insights on Bitcoin and the latest news in the cryptocurrency world.
