In a significant development for crypto regulation, Coinbase has successfully obtained internal U.S. Securities and Exchange Commission documents detailing the agency’s probe into Ethereum 2.0. This access comes after the exchange pursued a Freedom of Information Act (FOIA) lawsuit.
Paul Grewal, Coinbase’s Chief Legal Officer, confirmed the SEC disclosed a list identifying previously withheld files. These internal records shed light on the agency’s scrutiny of the blockchain’s transition and its views on ETH.
Key documents now partially revealed include a May 2022 analysis applying the Howey test to ETH 2.0, a February 2023 email internally debating Ethereum’s potential classification as a security, and an April 2023 memo prepared just before the formal investigation was authorized. A narrative detailing the case’s closure is also listed.
The SEC had initially blocked Coinbase’s FOIA requests, invoking an exemption for ongoing enforcement actions. However, following the conclusion of the Ethereum 2.0 investigation without any charges filed against relevant parties, the agency conceded this exemption might no longer be valid.
Despite this concession, the SEC proposed a lengthy three-year review period for over 132,000 documents, citing the need to check for other exemptions. This move highlights the ongoing friction between regulators and the digital asset industry over transparency.
Grewal highlighted apparent inconsistencies in the SEC’s approach, questioning the criteria used for evaluating digital assets like Ethereum compared to others. He stressed that greater regulatory clarity is essential to foster innovation responsibly and avoid repeating past uncertainties surrounding understanding crypto regulation.
This FOIA dispute is part of a larger push by Coinbase to challenge perceived regulatory ambiguity within the crypto space. The exchange has engaged in multiple legal efforts seeking more transparency from federal agencies regarding their actions and investigations involving crypto tokens and blockchain technology, reflecting the complexities surrounding Ethereum’s evolving landscape.