Coinbase, the largest cryptocurrency trading platform in the United States, has filed a lawsuit against the U.S. Securities and Exchange Commission (SEC) and the Federal Deposit Insurance Corporation (FDIC) because the two regulators rejected Coinbase's request for relevant information about their actions against cryptocurrency entities. Coinbase hopes to force the SEC and FDIC to disclose this information to industry participants in accordance with the Freedom of Information Act (FOIA) through the lawsuit.
According to the documents submitted by Coinbase to the U.S. District Court for the District of Columbia, the SEC and FDIC have not fulfilled their obligations under FOIA, that is, when cryptocurrency-related cases have been closed, relevant information should be released to the public. Coinbase believes that the refusal of the SEC and FDIC not only violates the law, but also affects the understanding and transparency of regulatory actions by industry participants.
Coinbase's lawsuit reflects the cryptocurrency industry's need for regulatory transparency and highlights the tension between regulators and cryptocurrency trading platforms over information disclosure. Through this lawsuit, Coinbase hopes to push regulators to more openly share details of their regulatory decisions and actions on the cryptocurrency industry.
Coinbase files lawsuit against SEC and FDIC
Coinbase stated in the lawsuit that the U.S. Securities and Exchange Commission (SEC) falsely claimed broad regulatory authority over the growing cryptocurrency industry. Although the SEC's position lacks basis in existing securities laws, the Commission has not provided a reasonable explanation and has instead launched a series of enforcement actions against cryptocurrency companies.
Coinbase also mentioned that the SEC, along with other financial regulators such as the Federal Deposit Insurance Corporation (FDIC), has taken joint actions to shut down cryptocurrency companies, seemingly with the goal of crippling the entire digital asset industry.
At the same time, Coinbase, together with professional services research firm History Associates, asked the SEC to provide three investigation records against cryptocurrency companies and entrepreneurs to prove the SEC's authority in regulating the cryptocurrency field. One of the investigations focused on Ethereum's native asset Ether, because as early as 2018, the SEC had clearly stated that Ether was not a security.
Recently, the SEC concluded its investigation into the Ethereum 2.0 proof-of-stake network and reaffirmed that Ether is not a security. Although these investigations have been closed for many years, the SEC still retains all records related to these three cases. Coinbase believes that the SEC's practice violates its obligations under the Freedom of Information Act (FOIA).
Coinbase stressed that the SEC's new interpretations, opacity and ever-changing positions on securities laws deprive regulated parties of their due process rights, which has left cryptocurrency companies guessing whether their activities will be considered securities transactions by the SEC and worrying about possible investigations, prosecutions and retroactive penalties.
SEC also filed a lawsuit against Coinbase
Coinbase Chief Legal Officer Paul Grewal further revealed that the FDIC rejected a letter request requiring financial institutions to indefinitely suspend cryptocurrency-related activities. It is worth noting that the FDIC Office of the Inspector General has criticized such actions in the past, claiming that they would restrict financial innovation and market growth in the cryptocurrency field.
“This approach is inconsistent with how regulators should behave, and inconsistent with how a transparent government should operate,” Grewal said. “Today, we are calling on financial regulators to do better. We are grateful for the court’s attention to these critically important issues, and we look forward to reporting further developments in the future.”
At the same time, the U.S. Securities and Exchange Commission (SEC) also filed a lawsuit against Coinbase, accusing the company of operating an unregistered securities exchange. The lawsuit reflects the tension between regulators and cryptocurrency trading platforms over compliance and regulatory requirements. #Coinbase #SEC #FDIC #加密行业
Conclusion:
Coinbase's lawsuit against the SEC and FDIC is not only an important appeal for regulatory transparency, but also a manifestation of the cryptocurrency industry's pursuit of legal status and fair regulation. By requiring information disclosure through legal means, Coinbase hopes to bring clearer rules and expectations to the industry, reduce uncertainty, and promote a healthy and innovative development environment.
The outcome of this lawsuit could have a profound impact on the regulatory framework for the cryptocurrency industry and provide a precedent for future fintech regulation.
At the same time, it also highlights the need for regulators to constantly adapt and update their approaches to balance innovation and risk management in a rapidly changing digital economy.
