Coinbase FOIA Bombshell Reveals Deep Internal SEC Crypto Disputes
By: coin central|2025/05/08 19:30:05
0
Share
TLDRCoinbase obtained SEC emails through FOIA that show internal conflicts on crypto regulation.A 2019 SEC email acknowledged a regulatory gap despite the agency’s public denial of such a gap.Coinbase argued that these contradictions weaken the SEC’s legal position on crypto enforcement.The SEC did not respond to a 2023 request to declare Ethereum a security in the KuCoin case.This silence added to the confusion over Ethereum’s regulatory status.Coinbase has released documents obtained through FOIA requests, exposing conflicting internal communications within the US Securities and Exchange Commission (SEC). The findings challenge the SEC’s public position on crypto regulation, including Ethereum and XRP, and reveal technical shortcomings. These documents clarify Coinbase’s ongoing legal disputes and underline the digital asset industry’s regulatory inconsistencies.Coinbase Exposes SEC Crypto Policy GapsCoinbase disclosed internal SEC communications that acknowledge a regulatory gap in the crypto space, despite later public denials. A 2019 email from SEC staff confirmed internal awareness of the gap, which contradicts the commission’s current enforcement-driven approach. This contradiction has intensified questions around the agency’s regulatory consistency and legal interpretations.– 2019 SEC email acknowledging the “crypto regulatory gap,” years before the SEC argued that there was no such gap.– 2023 email from the NYAG’s Office asking the SEC to submit an amicus brief in their KuCoin case arguing that ETH is a security. Rather than clear that up, SEC... pic.twitter.com/BMgkdSS5Q3— paulgrewal.eth (@iampaulgrewal) May 7, 2025Additionally, Coinbase has used these documents to reinforce its argument that the SEC’s actions lack a clear legal foundation. The exchange maintains that inconsistent internal positions weaken the legitimacy of the SEC’s legal actions against crypto entities. These revelations have raised fresh concerns about the transparency of the SEC’s crypto policy.Coinbase argues that the agency’s stance complicates efforts to create responsible frameworks for digital asset compliance. The absence of a unified regulatory approach has left the crypto sector without reliable guidance. This regulatory gap, supported by FOIA findings, forms a core element of Coinbase’s current legal defense.SEC Ignored Key Ethereum Legal RequestCoinbase also uncovered an email showing the New York Attorney General’s request for SEC input in the KuCoin case. In 2023, the Attorney General asked the SEC to support a claim that Ethereum is a security, but the SEC did not respond. This silence has contributed to confusion over Ethereum’s regulatory classification.Coinbase highlighted that the agency’s lack of response further complicates its credibility regarding the security status of major cryptocurrencies. The FOIA documents show that the SEC avoided offering legal clarity in a key proceeding involving a global crypto platform. Such actions have raised more questions than answers about the agency’s strategic intent.The email revealed by Coinbase suggests internal hesitation, which conflicts with the SEC’s broader enforcement posture in the crypto space. Coinbase emphasized that such inaction reflects an unclear regulatory direction pattern.Coinbase also exposed a surprising internal email detailing the SEC’s technical difficulties in reviewing video evidence. In 2023, the commission could not open a video file Coinbase submitted during a formal response process.The email revealed that the SEC had trouble accessing key files during regulatory escalation. Coinbase used this incident to argue that the agency is ill-equipped to manage the pace of technology in the crypto space. This point adds weight to Coinbase’s broader critique of the SEC’s institutional preparedness.The post Coinbase FOIA Bombshell Reveals Deep Internal SEC Crypto Disputes appeared first on CoinCentral.
You may also like

These days, even hackers are losing money
Although hackers possess excellent skills and can complete a meticulous harvest in a matter of hours, the market does not care where the chips come from; in the face of a bear market, everyone is treated equally.

Arm Chips In-House: Rewire News Brief
For Intel and AMD, the x86 Moat Just Got a Little Less Secure

IOSG: Stablecoin Reshaping Asia Cross-Border Payments? Strategic Landscape and Investment Opportunities Analysis
Stablecoins have not truly addressed the two core pain points of domestic settlement and exchange rate conversion.

\$73 Billion OpenAI Aims for IPO: Drops Sora, Snubs Disney, Puts Microsoft in Risk Factors
Altman is Telling a Growth Story in Subtraction

The Chip Industry's Most Secure Middleman Just Took a Very Risky Turn
Arm's decision to fabricate chips is essentially competing with its own customers

CZ's Latest Interview: My Experience is Replicable, Writing a Book to Inspire Young Entrepreneurs
How will CZ measure the success of this industry and how far have we really come?

Morning News | Invesco acquires a $900 million on-chain fund from Superstate; ParaFi has raised $125 million for its new fund; Solana Foundation launches developer platform SDP
Overview of Important Market Events on March 24

What is the background of this new fund that the two major prediction market platforms have rarely joined forces to create?
When Klashi's early employees went out to raise funds, the two CEOs chose to appear together on the list of investors.

SIREN, another leveraged scam
What kind of experience can we gain from these similar situations?

Token has become extremely popular, and the blockchain is very sad
When AI's tokens become the new "digital oil," blockchain can only watch its once-dreamed dreams materialize in a completely unfamiliar way. This misaligned popularization is a victory for AI, but also the deepest helplessness for blockchain.

Tether's major shareholder invests £12 million to support the "British version of Trump" in the cryptocurrency sector
In the United States, the story of the cryptocurrency industry pouring money to support Trump and reclaiming regulatory dominance has come to an end. In the United Kingdom, the same script is being replayed.

Huang Renxun's Latest Podcast: Will NVIDIA Reach $1 Trillion? Will the Number of Programmers Increase Instead of Decrease? How to Deal with AI Anxiety?
Hashpower will determine everything; human work will only be restructured, not disappear

Besides Resolv Hack, This DeFi Vulnerability Type Has Occurred Four Times
17 minutes, 100k turned into 25M.

Trump Cries Peace, $1.5 Billion Dash | Rewire News Evening Brief
In the first 15 minutes of trading, $1.5 billion in futures trades have already taken place

From x402 to MPP: Cloudflare's crucial vote, will it go to Coinbase or Stripe?
Cloudflare is both building walls and opening windows. It provides both blocking tools and paid access tools. They decide what is kept out, what is allowed in, and under what conditions it can enter.

BlackRock CEO issues annual open letter: The wave of tokenization has arrived, and we will lead this trend
Rebuild capitalism that belongs to everyone.

When Backpack backstabs the community
Once a fundamental rift in trust appears, the cost that Backpack must pay to repair it is likely far more expensive than the profits previously "harvested" through service fees.

When gold is no longer a safe haven, and Bitcoin continues to panic
The whole world is waiting for the Strait of Hormuz to reopen. Why not guess which type of asset will return to pre-war levels first?
These days, even hackers are losing money
Although hackers possess excellent skills and can complete a meticulous harvest in a matter of hours, the market does not care where the chips come from; in the face of a bear market, everyone is treated equally.
Arm Chips In-House: Rewire News Brief
For Intel and AMD, the x86 Moat Just Got a Little Less Secure
IOSG: Stablecoin Reshaping Asia Cross-Border Payments? Strategic Landscape and Investment Opportunities Analysis
Stablecoins have not truly addressed the two core pain points of domestic settlement and exchange rate conversion.
\$73 Billion OpenAI Aims for IPO: Drops Sora, Snubs Disney, Puts Microsoft in Risk Factors
Altman is Telling a Growth Story in Subtraction
The Chip Industry's Most Secure Middleman Just Took a Very Risky Turn
Arm's decision to fabricate chips is essentially competing with its own customers
CZ's Latest Interview: My Experience is Replicable, Writing a Book to Inspire Young Entrepreneurs
How will CZ measure the success of this industry and how far have we really come?
