Cryptocurrency exchange Coinbase has taken legal action against the U.S. Securities and Exchange Commission (SEC) and the Federal Deposit Insurance Corporation (FDIC), filing lawsuits on Thursday in the U.S. District Court for the District of Columbia. The lawsuits accuse the agencies of unfair targeting, opaque practices, and failing to respond to Freedom of Information Act (FOIA) requests.
Coinbase’s legal challenges aim to address what it perceives as excessive regulatory measures by the SEC and FDIC, which it claims hinder the cryptocurrency sector’s growth by restricting access to banking services and withholding crucial regulatory information.
Specifically, Coinbase has criticized the SEC for allegedly using privacy concerns to obscure its regulatory strategies, particularly in relation to Ethereum’s proof-of-stake transition and other cryptocurrency entities.
The FDIC is also under scrutiny for reportedly advising banks to curb their expansion into crypto-related services through directives known as “pause letters,” a tactic Coinbase compares to the controversial “Operation Choke Point.”
This recent legal action follows Coinbase’s previous lawsuit from April 2023, where the exchange sought clarity on specific crypto-related regulations. Despite ongoing discussions since July 2022, Coinbase asserts that the SEC has yet to provide clear guidelines, opting instead to enforce existing securities laws that Coinbase argues are inadequate for regulating cryptocurrencies effectively.
Coinbase’s lawsuits mark a significant escalation in its efforts to challenge regulatory practices it believes are stifling innovation and transparency within the cryptocurrency industry.
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