New York, Thursday, October 17, 2024-On October 15, Coinbase has filed for a partial summary judgment in its ongoing legal battle with the US Securities and Exchange Commission (SEC).
The crypto exchange aims to gain access to internal documents from the SEC regarding its stance on cryptocurrency regulations, citing repeated refusals by the regulator to clarify which digital assets are subject to securities laws.
Coinbase’s filing accuses the SEC of stonewalling the exchange’s efforts to obtain these documents, which it had requested through the Freedom of Information Act (FOIA). The SEC has reportedly asked for a three-year review period to process Coinbase’s requests. Lawyers for Coinbase argue that the regulator’s refusal to release the information is unjustified, and they are pushing for an expedited review of SEC-generated documents.
Coinbase’s motion highlights frustration within the crypto industry regarding the SEC’s regulation-by-enforcement approach. “For years, the SEC has refused to explain which digital-asset transactions fall under securities laws, all while launching an enforcement campaign against digital-asset firms,” the filing states.
The SEC has been a key player in high-profile regulatory cases against major crypto firms, including Kraken, Binance, and Ripple. Recently, Crypto.com also sued the SEC, accusing the agency of overreach after receiving a Wells notice.
As the lawsuit unfolds, political dynamics could also play a role. Republican nominee Donald Trump has vowed to dismiss SEC Chair Gary Gensler if elected, while Democratic nominee Kamala Harris has remained non-committal regarding her stance on blockchain regulations.
