Coinbase Files For Partial Summary Judgement In SEC Case, Regulator Pushes For 3 Year Review Period

Coinbase filed on October 15 for a partial summary judgment in its lawsuit against the United States Securities and Exchange Commission (SEC) as it seeks documents from the federal agency regarding its stance toward current crypto regulations.

Coinbase Files For Partial Summary Judgement

According to the legal document, Coinbase has filed Freedom of Information Act (FOIA) requests to obtain internal documents on crypto from the SEC, only for the federal regulator to reject the crypto exchange’s attempts.

“For years, despite repeated requests from regulated parties, the SEC has refused to explain which digital-asset transactions it believes are subject to the securities laws or how firms can comply with existing, inapt securities rules,” the filing reads in part. “At the same time, the agency has launched a scorched-earth enforcement campaign against digital-asset firms for their purported failures to comply with the agency’s unworkable and unknowable rules.”

🚨NEW: This morning @coinbase filed a motion in a DC court asking a judge to grant a partial summary judgment in its lawsuit suing the @SECGov to gain access to internal documents relating to #crypto enforcement.

Coinbase lawyers say the SEC has been stonewalling its attempts to…

— Eleanor Terrett (@EleanorTerrett) October 15, 2024

Lawyers for the Brian Armstrong-led organization argue that the SEC cannot legally justify withholding documents related to the crypto exchange’s FOIA requests. The government agency purportedly requested three years before it could review Coinbase’s requests.

“Any burdens on the SEC can be fully addressed by focusing immediate litigation on the SEC-generated documents on a reasonable briefing schedule while the parties negotiate reprocessing of the remainder,” the motion states.

The SEC’s Stringent Approach To Crypto Regulations

The SEC has long been criticized for its regulation-by-enforcement approach to digital assets. Notable crypto players such as Kraken, Binance, and Ripple have been in trouble with the federal regulator.

Last week, crypto platform Crypto.com sued the SEC after it received a Wells notice indicating the Gensler-led agency would issue an official enforcement action against it.

In a letter announcing the lawsuit, Crypto.com Kris Marszalek lambasted the SEC’s crypto regulatory strategy by calling it “unauthorized overreach and unlawful rulemaking.”

“Improper SEC enforcement actions are part of the process of operating a legitimate and licensed crypto business in the U.S.,” Marszalek said. “While this is an unprecedented move for our company to file suit against a federal agency, actions by that agency towards our industry have left us no other choice.”

Republican nominee Donald Trump has promised to fire Gensler should he win next month’s U.S. presidential election. In contrast, Democratic nominee Kamala Harris has remained relatively vague on her support for the blockchain sector as a whole.