- Coinbase CLO Paul Grewal updates on FOIA suits against SEC and FDIC over withheld documents, including those on Ethereum 2.0, with an expected summary judgment by 2025.
- Coinbase CLO Paul Grewal challenges SEC over Ethereum 2.0 documents.
- SEC admits Ethereum case is closed, decision expected by 2025.
- FDIC’s “pause letters” in crypto banking under legal scrutiny by Coinbase.
Coinbase’s FOIA lawsuit challenges SEC and FDIC over withheld documents related to Ethereum 2.0, with a summary judgment expected by 2025.
Coinbase CLO Paul Grewal Updates on FOIA Lawsuits Against SEC and FDIC
Coinbase’s Chief Legal Officer, Paul Grewal, provided an update on the ongoing Freedom of Information Act (FOIA) lawsuits against the U.S. Securities and Exchange Commission (SEC) and the Federal Deposit Insurance Corporation (FDIC). According to Grewal, the SEC has confirmed that the investigation into Ethereum 2.0 is closed, with a decision expected by 2025.
SEC Admits to Withholding Ethereum 2.0 Documents
In a series of posts, Paul Grewal revealed that both the SEC and FDIC have acknowledged the existence of the requested documents but claimed that they are entitled to withhold them due to governmental privilege. The SEC has cited FOIA’s “exemption 7A,” which protects information that could interfere with law enforcement proceedings.
Legal Scrutiny Over FDIC’s “Pause Letters”
The FOIA lawsuit also targets the FDIC’s “pause letters” sent to banks, advising them to halt engagement with crypto firms. Coinbase aims to uncover these documents to understand the FDIC’s stance and actions against digital assets. Paul Grewal emphasized that these letters play a significant role in shaping the financial landscape for crypto banking.
Timeline for Summary Judgment
Coinbase is pushing for discovery of the withheld documents, including those related to concluded SEC investigations. Grewal noted that while there will be no discovery in these cases, summary judgment briefing is anticipated soon, and a final decision by the court is expected in 2025. This timeline is crucial for Coinbase and other stakeholders in the crypto industry, who are looking for clearer regulatory guidance.
Historical Context and Upcoming Developments
Historically, the SEC has been reluctant to release documents under FOIA requests, often citing exemptions to avoid disclosure. The lawsuit led by History Associates Inc. on behalf of Coinbase is part of a broader effort to challenge this practice. Additionally, Coinbase has another ongoing lawsuit against the SEC, alleging that the company operated an unregistered securities exchange.
Conclusion
The outcome of these FOIA lawsuits could significantly impact the future regulatory environment for digital assets. With the SEC’s confirmation that the Ethereum 2.0 investigation is closed and a summary judgment expected by 2025, the crypto community is eagerly awaiting more transparency and legal clarity. As Coinbase continues its legal battles, the industry anticipates that these efforts will lead to more defined guidelines for digital asset securities.
