Coinbase, a crypto exchange, sued the United States Securities and Exchange Commission and the Federal Deposit Insurance Corporation for noncompliance with Freedom of Information Act requests.
On June 27, Coinbase filed lawsuits in a Washington, D.C., district court against the SEC and FDIC, seeking access to internal records. The crypto exchange alleges a “deliberate and concerted effort” by these regulators to pressure banks into denying crypto firms access to the federal banking system.
According to a FoxBusiness report, Coinbase argues that the agencies are seeking to conceal if top leadership is utilizing coordinated pressure techniques to “choke off” the $2 trillion digital asset companies from the federal banking system.
This is commonly referred to as “Operation Chokepoint 2.0,” a name used by the crypto sector to characterize what they perceive to be a systematic effort by financial regulators to limit crypto businesses’ access to vital banking services.
The FOIA requests to the SEC sought information on its perspective on Ethereum’s transition to a proof-of-stake (PoS) consensus mechanism. Coinbase also requested records on Ethereum 2.0 and past investigations involving Zachary Coburn and Enigma MPC through its consultancy firm, History Associates Inc.
In legal documents, History Associates said, “For nearly two years, a wide array of federal financial regulators—including the Securities and Exchange Commission (“SEC”), the FDIC, and the Federal Reserve Board — have used every regulatory tool at their disposal to try to cripple the digital-asset industry. This FOIA lawsuit seeks to bring to light the FDIC’s role in that unlawful scheme.”
Coinbase’s legal complaints claim that the SEC and FDIC’s actions are “a coordinated attempt to cut off digital-asset firms from essential banking services.”
Coinbase views the failure to share records from completed investigations as a purposeful impediment to understanding the legal framework that underpins the agencies’ enforcement activities.
Coinbase’s chief legal officer, Paul Grewal, voiced dissatisfaction with the regulators’ approach in a thread on X (previously Twitter), emphasizing the importance of transparent government operations and clearer regulatory requirements for digital assets.
According to History Associates, this legal action is part of Coinbase’s continuous fight with US regulators and the larger argument over how digital assets should be regulated in the US.
Also Read: Coinbase Declines Support for ASI Token Migration
