SAN FRANCISCO, Friday, June 28, 2024- Cryptocurrency exchange Coinbase is suing the U.S. Securities and Exchange Commission (SEC) and the Federal Deposit Insurance Corporation (FDIC) after both agencies denied requests for public records, the company announced Thursday.1
“Coinbase, Inc., the largest digital-asset trading platform in the United States, retained
History Associates Incorporated to submit Freedom of Information Act (“FOIA”) requests seeking
information about certain digital-asset-related investigations and enforcement actions initiated by
the Securities and Exchange Commission (“SEC” or “Commission”). The SEC denied those
requests. History Associates now brings this action against the Commission to compel compliance
with FOIA,” the complaint says.
Coinbase hired a consulting firm, History Associates Incorporated, in 2023 to seek documents from the SEC and FDIC through the Freedom of Information Act (FOIA). Both requests were ultimately denied.
History Associates, with Coinbase named as a related party, filed lawsuits against both agencies in an attempt to compel them to release the requested documents.
One lawsuit targets the SEC’s denial of a July 2023 FOIA request seeking information on the agency’s views on Ethereum and its classification of the cryptocurrency’s token, ETH.
The SEC initially denied the request, claiming no responsive documents existed. After an appeal, the SEC acknowledged having the documents but withheld them under FOIA exemption rules.
Coinbase and History Associates argue these exemptions don’t apply and are requesting the court order the SEC to release the information.
A separate FOIA request sought documents related to investigations involving Enigma MPC and Zachary Coburn, founder of Etherdelta
Both entities received Cease-and-Desist orders from the SEC for alleged securities violations.
The lawsuit argues the SEC’s rationale for withholding documents “frustrates the legitimate purposes” of Coinbase’s request and violates its FOIA obligations.
Coinbase also directed History Associates to file a FOIA request with the FDIC in November 2023. They sought copies of “pause letters” allegedly sent by the FDIC to financial institutions, requesting a halt on cryptocurrency-related activities. The FDIC’s Office of Inspector General confirmed the existence of these letters in an October 2023 report.
The FDIC denied the FOIA request twice, prompting the lawsuit from Coinbase and History Associates. They allege the FDIC is violating federal disclosure requirements and demand the court compel the agency to release the documents.
These lawsuits mark the latest chapter in an ongoing legal battle between Coinbase and the SEC. Coinbase previously sued the SEC over its denial of a rulemaking petition in 2022, and the SEC itself filed a lawsuit against Coinbase in June 2023 for alleged securities violations.
- assets.ctfassets.net: https://assets.ctfassets.net/sygt3q11s4a9/5kFDfqZqUlghSA5nHP7Akh/18d5ec8b65b59eec37047cfa2e790816/-1-_SEC_FOIA_Complaint.pdf[↩]
