Coinbase CLO Calls Out U.S. FDIC Over Withheld Information

Leading crypto exchange Coinbase is pushing for transparency from U.S. regulators but is facing roadblocks. The crypto exchange filed Freedom of Information Act (FOIA) requests to uncover details about U.S. regulator’s actions against crypto companies. 

Coinbase alleged that the Federal Deposit Insurance Commission (FDIC) and the U.S. Securities and Exchange Commission (SEC) have responded slowly. The trading platform said the agencies are either holding back key details or releasing documents with many important details left out.

Coinbase is frustrated by the lack of clarity as it intensifies its fight to expose what it sees as unfair targeting of the crypto industry.

Coinbase Fights Against Operation Chokepoint 2.0

The crypto exchange filed a Freedom of Information Act request to obtain documents from the Federal Deposit Insurance Commission. The documents were supposed to shed light on the agency’s involvement in Operation Chokepoint 2.0. 

This operation is an alleged effort by regulators to restrict crypto companies from accessing banking services. However, when the FDIC finally responded, Coinbase was not satisfied. In a recent X post, Coinbase’s Chief Legal Officer, Paul Grewal, accused the FDIC of being slow and unhelpful. 

He believes the agency is deliberately withholding key details about its actions. Coinbase wants to see proof that the FDIC properly documented its role in banking restrictions against crypto companies. However, the agency has not provided clear answers so far.

Although the FDIC has promised to search for more records, Coinbase is not convinced it will get the full truth.

The Demand for SEC’s Legal Spending Records

The FDIC is not the only regulator Coinbase is challenging. The company has also filed a FOIA request against the SEC. This time, Coinbase wants to know how much money the agency has spent on legal battles against crypto companies.

For years, the SEC has aggressively targeted crypto firms with lawsuits, but many of these cases have ended in dismissal. Recently, the SEC dropped its case against Kraken and OpenSea. The agency’s legal actions against Coinbase were widely criticized, but they eventually ended. 

The crypto firm believes that the SEC wasted public resources by going after crypto businesses instead of providing clear rules for the industry. The exchange is especially concerned about the costs of these legal actions. 

The SEC often hires expensive third-party contractors to assist in its cases, which likely increases the financial burden on taxpayers. 

Coinbase Calls for Transparency in Crypto Regulation

Coinbase’s fight with regulators shows the ongoing problem between the crypto industry and the U.S. government. Under the previous administration, regulators made it harder for crypto businesses instead of giving them clear rules to follow. The exchange wants the FDIC and SEC to be open about their actions, calling for transparency. 

Coinbase is determined to uncover the truth and the result could change the future of the crypto industry.