Coinbase gains access to SEC’s Ethereum 2.0 investigation documents after FOIA lawsuit, calling for clearer crypto regulations - IcoHolder.

Coinbase has gained access to internal U.S. Securities and Exchange Commission (SEC) documents related to the agency’s investigation into Ethereum 2.0 after filing a Freedom of Information Act (FOIA) lawsuit. Paul Grewal, Coinbase's Chief Legal Officer, revealed on X that the SEC disclosed a list of previously withheld documents.

Among the disclosed materials are a May 2022 internal analysis of Ethereum 2.0 under the Howey test, a February 2023 email questioning whether Ethereum should be classified as a security, and a memorandum from April 2023 prepared for SEC commissioners before the agency authorized its investigation into ETH 2.0. Also included is a case closing narrative for the investigation.

The SEC had initially denied Coinbase’s FOIA requests, citing Exemption 7(A) concerning ongoing enforcement proceedings. However, following the closure of the Ethereum 2.0 investigation without charges, the SEC acknowledged that the exemption “may” no longer apply, though it proposed a three-year timeline to review over 132,000 documents for potential exemptions.

Grewal criticized the SEC for its inconsistent treatment of crypto assets, questioning why Ethereum passed the agency's internal "ecosystem" test while other cryptocurrencies did not. He called for greater transparency to avoid repeating past regulatory missteps.

This legal action is part of Coinbase's broader effort to challenge what it views as regulatory overreach and a lack of clarity within the crypto industry. The exchange has also filed lawsuits against both the SEC and the Federal Deposit Insurance Corporation (FDIC) over denied FOIA requests related to other investigations and actions in the cryptocurrency sector.