Breaking: Coinbase Files Lawsuit Against SEC, FDIC Over Debanking Crypto Firms

Coinbase, a prominent crypto exchange, has initiated a lawsuit against the U.S. Securities and Exchange Commission (SEC) and the Federal Deposit Insurance Corporation (FDIC). This lawsuit was filed in the U.S. District Court for the District of Columbia. In the filings, Coinbase claims that these federal agencies have failed to comply with Freedom of Information Act (FOIA) requests.

Coinbase Sues SEC & FDIC

Moreover, Coinbase is seeking a court order to compel the agencies to release the requested information. In addition, the exchange has engaged History Associates Inc., a consulting firm, to submit the FOIA requests. Furthermore, the lawsuits allege that the SEC and FDIC have been using regulatory measures to hinder the growth of the crypto industry by cutting off its access to the banking sector.

According to the complaint against the FDIC, “For nearly two years, a wide array of federal financial regulators — including the Securities and Exchange Commission, the FDIC, and the Federal Reserve Board — have used every regulatory tool at their disposal to try to cripple the digital-asset industry.”

Furthermore, the lawsuit aims to uncover the FDIC’s involvement in what Coinbase describes as an unlawful scheme. Hence, the FOIA requests submitted to the SEC sought information on the agency’s stance on Ethereum (ETH). This inquiry follows a recent lawsuit by blockchain software firm Consensys against the SEC.

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