Paul Grewal, Chief Legal Officer of Coinbase, has provided a report on the Freedom of Information Act (FOIA) lawsuit brought by the U.S. Securities and Exchange Commission (SEC) and the Federal Deposit Insurance Corporation (FDIC).
Grewal stated that the SEC has confirmed that its investigation into Ethereum 2.0 is complete, with a summary judgment briefing to follow and a decision expected in 2025.
SEC and FDIC Withholding Documents
In a series of posts, Coinbase Chief Legal Officer Paul Grewal said the SEC and FDIC confirmed the existence of the documents requested by Coinbase, but said they were entitled to withhold them due to government privilege.
Yesterday both @SECGov And @FDICgov Responses filed in our FOIA lawsuits. As a reminder, the SEC wrongfully withheld documents from closed investigations (including Ethereum 2.0), and the FDIC wrongfully withheld the “pause letters” it sent to banks warning them to stop…
— paulgrewal.eth (@iampaulgrewal) 8 August 2024
Coinbase is currently attempting to disclose documents related to completed investigations, one of which concerns Ethereum 2.0, which the SEC recently confirmed was completed. The FDIC has also declined to release the so-called “pause letters” that were sent to banks asking them to stop doing business with crypto firms.
“We have requested records from the SEC on completed investigations to learn how the SEC feels about its new and expansive (and unconstitutional) power,” Grewal said. In particular, one of the recently completed investigations involved ETH, which the SEC determined was not a security in 2018.”
This closure of the Ethereum case and the declaration that it is not a security came before the XRP lawsuit. According to a report by Coingape, Ripple had to pay just over $125 million in civil penalties, thus closing the SEC lawsuit and determining that XRP is not a security.
Coinbase CLO Summary Judgment Schedule
The SEC had previously denied discovery requests citing FOIA’s “Exception 7A,” which shields information that could hinder law enforcement. Grewal noted that there will be no discovery in those cases and that summary judgment is expected to follow, with the final decision expected in 2025.
Previously, History Associates Inc. filed a lawsuit against the SEC and FDIC on behalf of Coinbase, claiming that regulators improperly denied FOIA requests that should have been disclosed under public records laws. These documents are important to understanding how the SEC comes to its decision about which digital assets are securities.
This lawsuit is one of several pending between Coinbase and U.S. financial regulators. Currently, one lawsuit remains in court in which the SEC alleges that Coinbase operated an unregistered securities exchange.
In addition, Coinbase has also sued the SEC to force the regulator to provide guidance on what it considers digital securities. The lawsuit against the FDIC then says the pause letters are part of a strategy by financial authorities to force banks to stop working with digital asset companies.
Kelvin Munene Murithi
Kelvin is a renowned writer specializing in crypto and finance with a bachelor’s degree in actuarial science. He is known for his sharp analysis and insightful content, has a strong command of English, and excels in thorough research and timely delivery.
Disclaimer: The content presented may contain the personal opinion of the author and is subject to market conditions. Conduct market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
✓ Share: