CoinbasehasfiledamotionwiththeUSDistrictCourtfortheDistrictofColombia,wantingtheSecuritiesandExchangesCommission(SEC)todisclosedocumentsdetailingitscryptoassetclassification.
However,thecommissionhasfoughtagainstCoinbase’slawsuit,askingthecourtfora3-yearwaitbeforereleasinganydocumentstotheexchange.
CoinbasewantstheSECtorevealallitsdocumentsoncryptoclassification
Coinbase,withthehelpofitsconsultingfirmHistoryAssociatesInc.,hassubmittedamotiontotheDistrictCourtofColumbia,requestingapartialsummaryjudgmentinitscaseagainsttheSEC.Theexchangewantstheregulatortoproducedocumentsonitscryptoclassification.
Initsfiledmotion,theexchangestatedthatthecommission’sseriesofdenialsofitsFOIArequestssubmittedmorethanayearagohavepushedittoseeklegalapproval.
Legally,theFOIAallowsthepublictoaskforaccesstofederalagencies’records.
However,accordingtotheexchange,thecommissionclaimedthattheFOIAexemption,7(A)“maynolongerapplybasedonunspecifieddevelopments”andfailedtoprovideanyresponsivedocuments.
EleanorTerrett,ajournalistatFoxBusiness,remarked:
CoinbaselawyerssaytheSEChasbeenstonewallingitsattemptstogetthesedocumentsthroughFOIArequests,despitetheexchangesuingtheagencytogetaccesstothem.
EleanorTerrett
TheSECnowwantsthecourttograntitathree-yeartimelinetoallowittore-reviewandpotentiallyreleasethedocumentstotheexchange.
CoinbaseconsultingfirmHistoryAssociatesInc.,however,hascriticizedtheSEC’srequesttothecourt,claimingtheexchangeisdelayingthedocumentrelease.
Coinbase’searlierFOIArequestsfocusedontwomajorinvestigationsthattheSEChadconducted.ThefirstcenteredaroundEnigmaMPC,acryptostartupthathadtosettlewiththecommissionin2020overaccusationsofunlawfultokensale.TheotherlookedintoZacharyCoburnofEtherDelta,whosettledwiththeSECin2018,withtheexchangeinbothinstancesrequestingtheinvestigationrecords.
TheSecuritiesandExchangesCommissionchargedCoinbaseInJune2023
Aboutayearago,theSECchargedCoinbasewithrunninganunregisteredsecuritiesbrokerplatformandillegallysellingandofferingsecurities.
AccordingtoGurbirS.Grewal,thethendirectoroftheSEC’sdivisionofenforcement,Coinbaseknewoftheregulator’ssecuritieslaw’sapplicabilitybutchosetooverlookit.Hearguedthattheexchange’sfailuresdeprivedinvestorsofassetprotections,includinginspectionbytheSEC,recordkeepingrequirements,andsafeguardsagainstconflictsofinterests.
TheSECevenrequestedthecourttoimposeinjunctionsanddisgorgementsonitsgainsandpenaltiestotheexchange.AsidefromtheSECcomplaintsbroughttocourt,CoinbasealsosuedtheSEC,hopingtocompeltheregulatortoactonapetitionforrulemakingithadfiledin2022.
cryptopolitan.com