Coinbase has filed a motion in the U.S. District Court of Columbia, accusing the U.S. Securities and Exchange Commission (SEC) of withholding key documents and using unjustified delays to obstruct access to information vital for its defense.
In the Oct. 15 filing, the exchange claims the SEC improperly relied on FOIA Exemption 7(A) and is now proposing an unreasonable three-year review to reassess the withheld documents.
The U.S. Freedom of Information Act (FOIA), enacted in 1966, allows public access to records from any federal agency. But there are some notable exceptions. One of the nine exemptions, the aforementioned 7(A), allows agencies to withhold documents relevant to law enforcement purposes.
In other words, the SEC is now claiming that satisfying Coinbase’s public records request would interfere with ongoing law enforcement proceedings.
U.S. publicly-listed crypto exchange Coinbase announced Tuesday it is ending its Paycheck Direct Deposit service, a feature that had previously allowed users to allocate part or all of their paycheck to be paid in crypto.
“Starting November 25, we'll no longer support paycheck direct deposit on Coinbase,” the exchange’s team said in an email sent to users Monday. “Please remove your Coinbase account from your paycheck to avoid delays in getting paid.”
However, the decision has sparked frustrati...
The new filing draws parallels to the SEC’s rejection of a separate motion filed by Coinbase in August 2024, which sought internal communications, including those from SEC Chairman Gary Gensler.
“The SEC’s stonewalling leaves History Associates no choice but to press forward challenging the agency’s already-final, erroneous denials,” Coinbase wrote in its filing.
Meanwhile, the SEC has called Coinbase’s separate subpoena request for additional documents as “overreaching” and burdensome.
Coinbase has filed a motion to compel the U.S. Securities and Exchange Commission, specifically targeting Chairman Gary Gensler, to produce documents deemed critical to its defense against the regulator.
In a motion filed in the U.S. Southern District Court of New York on Tuesday, Coinbase claims that in the years before taking legal action, the SEC said it had met with crypto market stakeholders and provided guidance around crypto regulation.
Coinbase argues that the SEC is now refusing to sea...
In July and August 2023, Coinbase submitted FOIA requests seeking internal SEC records related to Ethereum’s transition to proof-of-stake and earlier enforcement actions involving firms such as Enigma MPC and Zachary Coburn.
The motion states the SEC denied the requests, citing Exemption 7(A), which protects records tied to active law-enforcement proceedings.
After Coinbase filed a lawsuit in June 2024 challenging these denials, the SEC conceded that the exemption “may” no longer apply due to unspecified developments.
On Tuesday, Paul Grewal, Coinbase’s Chief Legal Officer, voiced his frustration on Twitter.
“Over a year ago we made FOIA requests aimed at files on ETH 2.0 and other mysteries that belong to all of us, not [the SEC]," he wrote. "We then sued to end their stall, only to get an entirely new set of excuses."
According to the filing, the SEC refused to release the documents, stating that it would need three more years to reprocess over 132,000 documents to assess whether other FOIA exemptions apply.
Coinbase’s motion criticizes this delay, pointing out how the SEC should have reviewed the documents for all potential exemptions when it first denied access.
As per the motion, the SEC has indicated it may request an Open America stay, which would postpone the review.
A day after cracking down on Binance, the SEC is now taking aim at Coinbase.
The Commission alleges in a new lawsuit that the crypto exchange failed to register as an exchange, clearing house, and broker despite providing investors these services. The SEC also alleges that Coinbase offered and sold unregistered securities via its staking service.
The agency also claims that Coinbase "made available for trading crypto assets that are being offered and sold as investment contracts, and thus as sec...
Coinbase contends that such a stay is unwarranted because the SEC had ample time to respond within FOIA’s 20-day statutory window.
In June 2023, the SEC sued Coinbase, alleging it operated as an unregistered securities exchange, broker, and clearing agency, and that its staking services constituted unregistered securities offerings.
Neither the SEC nor Coinbase have yet responded to requests for comments from Decrypt.
Edited by Stacy Elliott.
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