Paul Grewal, Chief Legal Officer of Coinbase, expressed strong criticism towards financial regulators for their handling of the digital asset industry. He stated that Financial regulators have used multiple tools at their disposal to try to cripple the crypto market. This comes in when the crypto exchange has been asking for clear guidelines over the trading linked to cryptos.
Coinbase hits back
Coinbase’s Chief Legal Officer highlighted that “the US Securities and Exchange Commission has claimed sweeping authority, but refuses to provide any rules, let alone consistent or coherent ones.”
Grewal revealed that Coinbase has filed lawsuits under the Freedom of Information Act (FOIA) to gain crucial information. He wrote, “Today we filed lawsuits under the Freedom of Information Act for requests we made over a year ago seeking important information to which we, and the public, are entitled.”
The attorney revealed that Coinbase asked the SEC for documents about closed investigations to shed light on how the commission views its newfound, sweeping (and unlawful) authority. However, one such investigation that only recently closed was focused on Ether.
Ether, the biggest altcoin, recorded a drop of 12% in the last 30 days. ETH is trading at an average price of $3,468, at the press time.
He added that Coinbase also sought the FDIC for the letters they sent to financial institutions asking them to indefinitely “pause” crypto-related activities. This is an action that the FDIC’s own Office of Inspector General criticized for creating a “risk that the FDIC would inadvertently limit financial institution innovation and growth in the crypto space.
What’s behind this?
Grewal stated that this is no way to regulate and this is no way to operate a transparent government. He revealed that, now, Coinbase demands better from our financial regulators.
As reported History associates requested “access to all copies and records concerning Ethereum’s shift to a proof-of-stake consensus mechanism.” Meanwhile, the SEC had denied the request and their appeal.
They also filed FOIA requests on two closed investigations. One of these investigations involves Zachary Coburn and another for Enigma MPC. The firm sought “records… reflecting or concerning any investigation” of the two.
Enigma MPC settled with the SEC in 2020 over securities law violations. Coburn created the crypto trading platform Ether Delta. He settled with the SEC in 2018. Despite appeals, the SEC had denied the requests by citing potential harm to ongoing enforcement proceedings.
