Unveiling Coinbase’s SEC Secrets: Ethereum 2.0’s Hidden Impact Revealed

Coinbase Wins Access to SEC’s Ethereum 2.0 Investigation Documents

Coinbase has secured internal documents from the U.S. Securities and exchange Commission (SEC) regarding its Ethereum 2.0 investigation. This comes after Coinbase filed a Freedom of Data Act (FOIA) lawsuit.

Paul Grewal, Coinbase’s Chief Legal Officer, shared on X that the SEC disclosed a list of previously withheld documents.These include:

• A May 2022 internal analysis of ETH 2.0 under the Howey test.
• A February 2023 email questioning Ethereum’s (ETH) classification as a security.
• An April 2023 memorandum for commissioners before the ETH 2.0 investigation.
• The case closing narrative for the investigation.

Initially, the SEC denied Coinbase’s FOIA requests, citing Exemption 7(A) for ongoing enforcement.However, after the Ethereum 2.0 investigation closed without charges, the SEC admitted the exemption might no longer apply. Yet, they proposed a three-year timeline to review over 132,000 documents.

Grewal criticized the SEC’s inconsistent treatment of crypto assets. He questioned why Ethereum passed the agency’s internal “ecosystem” test while others did not. He stressed the need for transparency to avoid regulatory missteps.

This legal action is part of Coinbase’s broader effort to challenge regulatory overreach in the crypto industry. The exchange has also filed lawsuits against the SEC and the Federal Deposit Insurance Corporation over denied FOIA requests related to past crypto investigations.