TL;DR
Coinbase is suing the SEC, alleging it and FDIC didn’t adjust to Coinbase’s Freedom of Data Act requests, in a deliberate try to chop crypto firms off from the banking system.
Full Story
You understand how Al Capone was locked up, not for the estimated lots of of deaths he ordered, however for tax evasion?
(Severely).
From the surface wanting in, it was a weirdly roundabout authorized technique — however it labored!
Identical factor goes for Coinbase’s new case towards the SEC.
From the crypto business’s perspective, the SEC has been wildly opaque about it’s enforcement — refusing to state the way it categorizes a variety of cryptocurrencies and blockchain merchandise, earlier than charging firms with securities fraud for promoting them.
(I.e. not sharing the principles of the sport, then suing of us for not taking part in by them).
…however that’s a tough case to argue (and win) in court docket.
So Coinbase is doing what the federal government did to Capone, and discovering a workaround, alleging the SEC and FDIC didn’t adjust to Coinbase’s Freedom of Data Act (FOIA) requests.
Requests that will have given them a greater understanding of the principles that the SEC needed them to play by.
However whether or not or not this method will work remains to be muddy.
Authorized consultants have been fast to notice that FOIA lawsuits are an uphill battle, given most authorities companies have broad disclosure exemptions.
On the finish of the day — win, lose, or draw — it’s simply good to see some pushback.
