Coinbase Reveals 10,000 Pages of Crypto Regulatory Documents
1min read Coinbase has released over 10,000 pages of previously hidden documents from U.S. regulators, providing an unprecedented glimpse into the inner workings of government agencies as they grapple with cryptocurrency regulations. These documents, obtained through Freedom of Information Act (FOIA) requests, include private emails, internal memos, and other confidential communications that shed light on the regulatory challenges and internal debates surrounding crypto.
Ask Aime: What impact does Coinbase's FOIA release have on cryptocurrency regulations?
The documents reveal that the Securities and Exchange Commission (SEC) and other agencies have struggled with understanding and implementing crypto regulations. For instance, a 2019 email from the SEC acknowledges a "regulatory gap" around crypto, a fact that the agency had publicly denied for years. Another 2023 message shows that the New York Attorney General requested the SEC to classify Ethereum as a security in a case against KuCoin, but the SEC did not act on this request. Additionally, an email highlights internal IT issues at the SEC, where staff members were unable to open a video file submitted by coinbase, indicating deeper flaws in how crypto-related matters are handled internally.
Coinbase's Chief Legal Officer, Paul Grewal, emphasized that the documents were gathered through extensive FOIA requests to key regulators. The company faced significant pushback, including delays, denials, and heavy redactions. To overcome these obstacles, Coinbase enlisted the help of a third-party FOIA expert, History Associates Inc., and took legal action to ensure compliance. Grewal stated that this effort is not just about one company or crypto investors but about the right of every American to know what the government is doing.
The release of these documents is significant as the crypto space continues to grow, and the need for clear regulations becomes more pressing. Coinbase's actions highlight the demand for transparency and accountability in government actions related to crypto. By bringing these conversations to the forefront, Coinbase aims to ensure that millions of crypto holders are informed and that transparency leads the way in regulatory discussions.
