Coinbase, a leading cryptocurrency exchange, has filed lawsuits against the United States Securities and Exchange Commission (SEC) and the Federal Deposit Insurance Corporation (FDIC) for their alleged failure to comply with Freedom of Information Act (FOIA) requests.

The crypto exchange claims that these federal agencies have been using various regulatory tools to "cripple the digital-asset industry" for nearly two years. Coinbase alleges that the SEC and FDIC are engaged in a "coordinated attempt to cut off digital-asset firms from essential banking services," a practice commonly referred to as "Operation Chokepoint 2.0" within the crypto community.

Coinbase's FOIA requests to the SEC sought information on the agency's stance regarding Ethereum's transition to a proof-of-stake (PoS) consensus mechanism, as well as records related to previous investigations involving individuals like Zachary Coburn and Enigma MPC. The exchange also requested the FDIC to provide information about its "pause letters," which instructed banks to steer clear of crypto-related activities until the agency clarified the associated risks.

However, Coinbase claims that both the SEC and FDIC have refused to comply with these FOIA requests, citing concerns about jeopardizing ongoing enforcement investigations. The crypto exchange has now turned to the courts, filing lawsuits in the U.S. District Court for the District of Columbia, seeking to compel the agencies to release the requested information.

Coinbase's chief legal officer, Paul Grewal, has expressed dissatisfaction with the regulators' approach, emphasizing the need for transparent government operations and clearer regulatory guidelines for the digital asset industry. This legal action is part of Coinbase's ongoing conflict with U.S. regulators and the broader debate over the appropriate regulatory framework for cryptocurrencies.

The outcome of these lawsuits could have significant implications for the crypto industry's access to the traditional financial system and the transparency of regulatory decision-making processes.