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 corporations off from the banking system.
Full Story
You know the way Al Capone was locked up, not for the estimated a whole bunch of deaths he ordered, however for tax evasion?
(Significantly).
From the skin wanting in, it was a weirdly roundabout authorized technique — nevertheless it labored!
Similar factor goes for Coinbase’s new case in opposition to 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 spread of cryptocurrencies and blockchain merchandise, earlier than charging corporations with securities fraud for promoting them.
(I.e. not sharing the foundations of the sport, then suing of us for not enjoying by them).
…however that’s a tough case to argue (and win) in courtroom.
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 foundations that the SEC wished them to play by.
However whether or not or not this strategy will work continues to be muddy.
Authorized consultants have been fast to notice that FOIA lawsuits are an uphill battle, given most authorities businesses have broad disclosure exemptions.
On the finish of the day — win, lose, or draw — it’s simply good to see some pushback.
