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Coinbase files lawsuits against SEC, FDIC


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According to emerging reports, a renowned cryptocurrency exchange, Coinbase, has initiated lawsuits against the United States Security and Exchange Commission (SEC) and Federal Deposit Insurance Corporation (FDIC). As per the reports, the exchange intends to retrieve documents relating to the approach of the two regulators to crypto regulation. 

As revealed, Coinbase filed the lawsuits on Thursday in a Washington, D.C., district court. More so, the exchange is aiming to access some records to prove that the SEC, FDIC and some other financial regulators in the U.S. are pressuring banks to deny crypto firms access to the federal banking system. 

The lawsuits emanated as a result of the exchange’s effort to leverage the Freedom of Information Act and access documents about three investigations into crypto establishments and entrepreneurs from 2018 to 2024 by the SEC. Additionally, the investigation also includes the recently closed probe by the SEC into the Ethereum network. 

Similarly, Coinbase demanded the memos released by the FDIC around March 2022 to May 2023 instructing banks to “pause” any crypto-centric operation. The exchange accused the FDIC of ordering banks to stop providing support for crypto until it could provide more guidance on the risk relating to digital assets. 

Further, the exchange alleged that both the SEC and the FDIC refused to grant it access to some needed information. Coinbase argued that the two regulators had violated the Freedom of Information Act that made the exchange entitled to access non-public records under the care of the agencies. 

Coinbase Accuses SEC and FDIC of Attempting to Kill Crypto 

In the lawsuits, the U.S.’s largest cryptocurrency exchange alleged that the agencies are carrying out a deliberate and concentrated effort to repress the growth of the crypto market. Also, Coinbase disclosed that the agencies have been using every tool at their disposal to subdue the digital assets sector. 

Consequently, the exchange emphasizes that it demands transparency from the federal government in regard to crypto regulation. Coinbase accused the SEC of failing to apply a consistent approach to the enforcement of its securities law. The inconsistency according to the exchange is affecting market participants and curbing the growth of the crypto landscape. 

On the flip side, Coinbase has devised tactics to kick against anti-crypto politicians. With just a few months left until the U.S. elections, the exchange has invested heavily in pro-crypto politicians to ensure their victory and secure regulatory clarity for cryptocurrency. 

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David Idowu
David Idowu
David Idowu is a crypto reporter and trader with wealthy years of experience. He believes that blockchain technology has numerous opportunities that are begging for proper utilization. Away from work, David is either reading about World Politics, History or Tech Innovations.

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