Coinbase has obtained internal documents from the U.S. Securities and Exchange Commission regarding the investigation of Ethereum 2.0 institutions following the Free Information Litigation.
Coinbase Chief Justice Officer Paul Grewal announced in X that the SEC has disclosed a list of withheld documents.
These documents include the May 2022 internal analysis of ETH 2.0 based on the Howey Test, the February 2023 email questioning the classification of Ethereum as security (ETH) and the April 2023 memorandum prepared for committee members before allowing the investigation of ETH 2.0. It is also listed when closing the story for investigation.
The SEC initially rejected Coinbase’s FOIA request and cited exemption 7(a) related to ongoing enforcement procedures.
However, after shutting down the Ethereum 2.0 investigation without a claim, the SEC has admitted that the exemption no longer applies. Nevertheless, the agency proposed a three-year timeline to review more than 132,000 documents for other potential exemptions.
Grewal criticised the SEC’s inconsistent treatment of crypto assets and questioned why Ethereum passed the institution’s internal “ecosystem” test, but others did not. He emphasized the need for transparency to prevent repeated regulations failures.
You might like it too: Omni announces a $10 million reward program for Solvernet users
Coinbase vs. Sec
This legal action is part of Coinbase’s broader efforts, and what it recognizes is a regulatory overreach and challenges it as a lack of clarity in the crypto industry.
The exchange has filed lawsuits against the denied SEC and federal deposit insurers who have been denied requests for the Freedom of Information Act related to past investigations and actions within the Crypto sector.
You might like it too: Cardano prices could skyrocket 110%, but there’s a catch
Discover more from Earlybirds Invest
Subscribe to get the latest posts sent to your email.
