Coinbase has obtained internal documents from the U.S. Securities and Exchange Commission concerning the agency’s investigation into Ethereum 2.0, following a Freedom of Information Act lawsuit. 

Paul Grewal, Coinbase’s Chief Legal Officer, announced on X that the SEC disclosed a list of withheld documents. 

These documents 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, and an April 2023 memorandum prepared for commissioners before authorizing the ETH 2.0 investigation. Also listed is the case closing narrative for the investigation.​

The SEC initially denied Coinbase’s FOIA requests, citing Exemption 7(A), which pertains to ongoing enforcement proceedings. 

However, after the closure of the Ethereum 2.0 investigation without charges, the SEC acknowledged that the exemption “may” no longer apply. Despite this, the agency proposed a three-year timeline to review over 132,000 documents for other potential exemptions.​

Grewal criticized the SEC’s inconsistent treatment of crypto assets, questioning why Ethereum passed the agency’s internal “ecosystem” test while others did not. He emphasized the need for transparency to prevent repeating regulatory missteps.​

Coinbase vs. SEC

This legal action is part of Coinbase’s broader effort to challenge what it perceives as regulatory overreach and lack of clarity in the crypto industry. 

The exchange has also filed lawsuits against the SEC and the Federal Deposit Insurance Corporation over denied Freedom of Information Act requests related to past investigations and actions within the crypto sector.