Coinbase Releases Over 10,000 Pages of Secret Government Documents, Challenging Opaque Regulatory Approach to Crypto

Coinbase’s FOIA Transparency Campaign Exposes Internal Conflicts at Regulatory Agencies Like the SEC and FDIC, Sparking a Wave of Calls for Clearer and More Open Regulatory Reform for the Crypto Industry in the US

On May 5, Coinbase, the leading US cryptocurrency exchange, officially released over 10,000 pages of previously undisclosed documents from government agencies, collected through FOIA (Freedom of Information Act) campaigns. The move is seen as an unprecedented effort to shed light on the opaque regulatory practices that the crypto industry has faced over the years.

In a statement on the X platform (formerly Twitter), Coinbase’s Chief Legal Officer Paul Grewal said:

“Coinbase is sharing all documents we receive from government agencies to promote citizens’ right to information. Transparency should not be a privilege – it is a constitutional right.”

Internal strife, lack of clear direction

The massive trove of documents, now made public via Coinbase’s FOIA Reading Room, reveals a number of troubling details, including:

A 2019 email from the SEC explicitly acknowledging “gaps in the crypto regulatory framework” – a stark contrast to the agency’s official stance in recent lawsuits.

A 2023 letter from the New York Attorney General asking the SEC to submit an amicus brief in the KuCoin case, where ETH was labeled a security – to which the SEC has not responded.

Internal emails from SEC staff admit they can’t open a video sent from Coinbase due to limited IT systems – revealing a lack of technological preparedness at the nation’s largest financial watchdog.

Refuses to cooperate and countersues

Coinbase says many of its initial FOIA requests were either rejected or provided with excessively redacted information by agencies like the SEC and FDIC. In response, the company has authorized History Associates Inc., a third-party FOIA specialist, to sue federal agencies for failing to fulfill their legal obligations.

“This fight isn’t just about Coinbase or the 52 million Americans who own cryptocurrency,” Grewal stressed. “It’s about the right to know the truth from the people we elected to serve the public.”

Call for Legislative Reform and Industry Transparency

Coinbase’s move to release its FOIA documents could be a turning point in the legal battle between the Web3 industry and regulators, observers say. It underscores the urgent need for clear, transparent, and innovation-friendly regulations – rather than the current “regulation by litigation” status quo.

With the SEC facing pressure for change under new Chairman Paul Atkins and Congress yet to come up with a comprehensive regulatory framework for digital assets, Coinbase’s move could pave the way for greater transparency – not just in the crypto industry but in public policymaking itself.