Coinbase files lawsuits against SEC and FDIC to access investigation materials
In a significant turn of events, Coinbase, one of the leading cryptocurrency exchanges, has filed lawsuits against the Securities and Exchange Commission (SEC) and the Federal Deposit Insurance Corp. (FDIC). The dispute centers on the classification of crypto tokens as securities and the regulatory framework for crypto exchanges and offerings.
The SEC, applying the Howey test, has historically viewed many crypto tokens as investment contracts and thus securities. This classification subjects tokens to strict securities laws regarding registration and disclosure.
Key regulatory developments in 2025 include the SEC's Project Crypto, launched under Chair Paul Atkins, aiming to modernize securities regulations for crypto. The project seeks to provide clear guidelines on when crypto assets qualify as securities, stablecoins, digital commodities, or collectibles, and to facilitate tokenized securities and decentralized finance (DeFi) trading outside traditional intermediaries.
Despite this shift towards a more innovation-friendly but cautious regulatory stance, many private crypto enforcement cases continue, and the SEC is still using enforcement tools for unregistered securities offerings in the crypto space. This maintains pressure on projects that have not obtained explicit regulatory clarity or exemptions.
Coinbase's user agreement reflects compliance with U.S. laws, including securities laws and sanctions, implying Coinbase accepts it must operate within existing securities and financial regulations, even as regulatory clarity evolves.
Coinbase's lawsuits, brought under the Freedom of Information Act, seek the court's intervention to force the FDIC and SEC to produce requested documents. The exchange wants to know how the SEC first began deciding which tokens would and would not be considered securities. The suits were filed in district court in Washington, D.C., and the FDIC did not return a request for comment.
Coinbase's chief legal officer, Paul Grewal, posted about the lawsuits on the social media site X, stating that the financial regulators have tried to cripple the digital-asset industry. Grewal also mentioned that the SEC has refused to provide any rules or coherent ones, and the FDIC pressured financial institutions to cut off the crypto industry from the banking system.
The suits come amid Coinbase's ongoing legal battle with the SEC, where the commission has accused Coinbase of operating an unregistered securities exchange. The SEC declined to comment on the lawsuits to a specific website. At least one SEC commissioner, Hester Peirce, has questioned the practice.
The cases were brought by History Associates, a consultant hired by Coinbase, and Coinbase also asked the FDIC for letters they sent to financial institutions asking them to indefinitely 'pause' crypto-related activities.
This legal battle underscores the ongoing debate about the regulatory framework for cryptocurrencies, with Coinbase and parts of the industry seeking clearer, tailored rules that differentiate crypto assets by purpose and function. The SEC’s ongoing efforts in Project Crypto and a crypto task force aim to clarify classifications and provide exemptions to reduce uncertainty, but as of mid-2025, significant regulatory ambiguity and legal tension remain between Coinbase and the SEC.
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