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Coinbase has sued both the SEC and FDIC after its consultancy firm had FOIA requests, related to past legal settlements with crypto companies accused of unregistered securities sales, denied.
What's the scoop?
- FOIA Requests: Requests under the Freedom of Information Act (FOIA) allow the public to request access to records from any federal agency. Coinbase's consultancy firm History Associates Incorporated’s FOIA requests to the SEC and FDIC were denied despite this.
- Enigma MPC and Etherdelta: Coinbase was seeking documents in previously settled cases involving data encryption startup Enigma MPC and trading platform Etherdelta. The SEC denied requests for documents related to these investigations.
- SEC Documents on Ethereum: The SEC initially claimed no responsive documents existed but later cited exemption rules after an appeal. These exemptions allow the government to withhold information for reasons like national security or personal privacy.
- Legal Action: History Associates is suing both agencies to obtain the requested documents, with Coinbase named as a related party.
Bankless Take:
Coinbase is now involved in three separate legal battles with the SEC. This latest suit, which shows these agencies withholding key information, paints them in the worst light so far. Further, concerning the Engima and Etherdelta FOIA denials, the agency has been caught in a clear lie — flip-flopping over reasoning for not publicly releasing documents. If any case were to showcase the hostility and stonewalling our industry’s been met with in the battle for clearer regulatory guidelines, it’s this.
US govt declared Coinbase an illegal brokerage, and then proceeded to use Coinbase as its brokerage https://t.co/DmdPKM5YHW
—Erik Voorhees (@ErikVoorhees) June 26, 2024
