Coinbase, the U.S.-based crypto exchange, has made a staggering discovery of over 10,000 new regulatory documents.
In early March 2025, the exchange filed a Freedom of Information Act (FOIA) request to uncover specific aspects of the Securities and Exchange Commission (SEC) regarding the crypto industry.
Coinbase’s FOIA Bombshell Unveils Regulatory Ambiguities
In an update shared by Paul Grewal, Coinbase’s Chief Legal Officer (CLO), the FOIA request has revealed over 10,000 government documents with far-reaching implications.
According to Grewal, the details affect Coinbase and the approximately 52 million Americans who own crypto assets.
He noted that advocating for public access to these government documents remains a fundamental right for all citizens.
Coinbase’s CLO believes citizens should be able to see government communications and policies, particularly when the decisions have a huge impact on the crypto industry.
He considers that these internal communications likely reveal inconsistencies in the SEC’s regulatory approach. If this is the case, crypto entities could use the knowledge to challenge these irregularities in court.
Grewal attached a link, calling crypto users to “Take a look for yourself.” The Coinbase CLO is using this approach to gather public trust and support for clearer regulations in the crypto sector.
Pressure on ETH Classification Emerges in KuCoin Case
Interestingly, the unearthed documents reveal a notable 2023 case involving KuCoin.
The document shows that the New York Attorney General (NYAG) pressured the SEC to classify Ethereum (ETH) as a security.
This was during the enforcement action against KuCoin. Although the SEC decided not to comment on Ethereum’s security status, the revelation highlights possible inconsistencies and compromises.
If determined, crypto firms or exchanges like Coinbase could leverage this regulatory gap and argue that the SEC is violating due process.
For perspective, the NYAG’s appeal to the SEC came after Ethereum moved to a proof-of-stake model. Before this, the SEC indicated that ETH operated as a commodity under U.S. law.
However, when Ethereum switched its consensus mechanism, it sparked debate among legal experts as they contemplated whether the asset fit into an investment contract.
This led to the NYAG’s appeal to the SEC, but did not resolve the issue with any clear classification.
It is worth noting that if ETH were classified as a security, it would have great implications for the Ethereum ecosystem.
Additionally, it could have severe implications for decentralized finance (DeFi) platforms, users, and developers alike. Notably, all would have to comply with the securities laws.
Is Legislative Clarity on the Horizon?
Meanwhile, there has been a push for legislative input to provide clarity for cryptocurrency in the United States.
In the U.S. Congress, the House Financial Services Committee and the House Agriculture Committee are jointly working on a draft bill that many anticipate could provide regulatory clarity.
According to Glenn Thompson, chairman of the Agricultural Committee, Congress aims to evolve a framework that protects consumers and closes identified regulatory gaps.
Notably, the proposed bill is based on the first effort towards crypto regulation, the Financial Innovation and Technology for the 21st Century Act (FIT21), which passed through Congress in 2024.
As the broader ecosystem awaits legislative action, some crypto lobbying organizations have urged the Senate to vote and affirm the GENIUS Act. They made their position known in a joint statement and released it on X.
