Coinbase, one of the largest cryptocurrency exchanges in the United States, filed a motion with a District of Columbia court seeking partial summary judgment in its lawsuit against the U.S. Securities and Exchange Commission (SEC). -United. The lawsuit seeks access to internal SEC documents related to the regulator’s enforcement actions against the cryptocurrency industry, particularly digital assets.
🚨NEW: This morning @coinbase filed a motion in a Washington court asking a judge to grant partial summary judgment in its lawsuit suing the @SECGov to access internal documents relating to #crypto application.
Coinbase’s lawyers say the SEC obstructed its attempts to…
– Eleanor Terrett (@EleanorTerrett) October 15, 2024
The crypto exchanges’ legal team alleges that the SEC intentionally delayed the release of these documents, despite Coinbase’s multiple attempts to obtain them through the Freedom of Information Act (FOIA). According to the exchange, the SEC has requested a three-year grace period to review whether the documents can be disclosed.
Coinbase vs. SEC: The Fight for Transparency
Coinbase’s motion for partial summary judgment follows months of friction between the exchange and the SEC over the latter’s handling of crypto-related regulations. The motion specifically targets the SEC’s refusal to disclose documents related to its enforcement strategy against digital asset companies. Coinbase says these records are critical to understanding the SEC’s current position on how securities laws apply to cryptocurrencies.
According to Coinbase’s lawyers, the SEC’s position has been inconsistent and the agency has failed to provide clear guidance on how companies operating in the digital asset space should comply with securities regulations. securities. This lack of clarity, combined with aggressive enforcement measures, has left companies like Coinbase navigating unclear and changing regulatory waters.
The delayed review
The SEC invoked the 7(A) exemption in its defense, a provision that allows the agency to withhold documents if their disclosure could interfere with ongoing law enforcement proceedings.
The SEC is delaying the release of documents related to its enforcement, citing a possible three-year review process. Coinbase is pushing back, arguing that further delays are unnecessary, especially since the documents may no longer be sensitive. This is not the first time the SEC has been accused of obstructing similar cases, such as History Associate, Inc v. SEC, which raised concerns about the agency’s handling of the FOIA request.
Coinbase’s legal team says the prolonged delays undermine the purpose of the Freedom of Information Act (FOIA), which aims to promote transparency and timely processing of government records. The company is seeking a court order to force the SSEC to release the documents more quickly, which could mark a significant development in the battle between the SEC and the crypto industry.
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