WASHINGTON D.C. – The fight for regulatory clarity in the cryptocurrency space has a new front. The Doge Transparency Foundation (DTF), a community-driven advocacy group, has filed a Freedom of Information Act (FOIA) lawsuit against the U.S. Securities and Exchange Commission (SEC). The lawsuit aims to compel the agency to release internal documents and communications regarding its classification of digital assets, particularly Dogecoin ($DOGE), in relation to others like Ethereum ($ETH).
The legal action, filed in federal court, comes after the DTF’s initial FOIA request to the SEC reportedly went unanswered within the statutory deadline. The foundation is seeking records that could shed light on the SEC’s internal deliberations and provide a clearer understanding of why some cryptocurrencies have been subject to intense regulatory scrutiny while others have seemingly received a “regulatory free pass.”
At the heart of the lawsuit is the long-standing ambiguity that has plagued the U.S. crypto market. The SEC, under the leadership of Chair Gary Gensler, has maintained that most cryptocurrencies are securities and fall under its jurisdiction. However, the agency has been criticized by industry leaders and lawmakers for its “regulation by enforcement” approach rather than providing clear, prospective rules.
The DTF’s lawsuit specifically draws parallels to the treatment of Ethereum. Documents released during the SEC’s case against Ripple Labs revealed internal discussions and the drafting of a 2018 speech by former SEC official William Hinman, in which he stated that Ethereum was not a security. This has become a cornerstone argument for many in the crypto industry who question the SEC’s consistency. The Doge Transparency Foundation argues that Dogecoin, which, like Bitcoin, is a proof-of-work cryptocurrency with a decentralized and open development history, should be subject to the same analytical framework.
In its filing, the DTF stated that the requested documents are “vital for the public to understand the SEC’s reasoning and the fairness of its application of securities laws.” A representative for the foundation added, “Investors, developers, and the public deserve to know how the SEC makes determinations that have multi-billion dollar impacts on the market. Transparency is the bedrock of fair regulation. Right now, the rules are opaque, and the playing field appears uneven. We are asking for the transparency that is required by law.”
This lawsuit represents another significant challenge to the SEC’s handling of the digital asset industry. It joins a series of high-profile legal battles, including those with Ripple, Coinbase, and others, that are collectively shaping the future of crypto regulation in the United States.
Legal analysts suggest that while winning a FOIA lawsuit can be a lengthy process, it has the potential to unearth crucial information, similar to how the Hinman documents provided unprecedented insight into the SEC’s internal debates. The outcome of the Doge Transparency Foundation’s case will be closely watched by the entire crypto community, as any revealed documents could have far-reaching implications for Dogecoin and the digital asset market as a whole.
The SEC has not yet issued a public statement in response to the lawsuit.