Coinbase’s ongoing efforts to push the U.S. government for clarity on its stance toward cryptocurrency have escalated, with the crypto exchange filing multiple legal requests for internal documents at the Federal Deposit Insurance Commission (FDIC)
The first request seeks documents outlining any cap or limit on digital assets held by American depository institutions imposed by the FDIC. Submitted through the Freedom of Information Act (FOIA), which mandates disclosure of internal information upon request
Coinbase’s second request to the FDIC is for information on the types of FOIA requests made to the bank regulator since the start of 2022. This aims to hold the FDIC accountable if it has denied numerous crypto-related requests for reasons such as sensitivity or privacy concerns
Paul Grewal, Coinbase’s chief legal officer, announced these requests as part of the company’s ongoing battle to reveal the U.S. government’s ambiguous crypto policies. “So long as the government remains opaque, Coinbase will persist,” he declared
The first is for documents about a digital asset deposit cap @FDICgov and other banking regulators have apparently been imposing on financial institutions. The second is for logs that show how these agencies are handling other FOIA requests. Each is separate from our FOIA filings…
— paulgrewal.eth (@iampaulgrewal) October 21, 2024
Coinbase recently filed a motion in a Washington, D.C. federal court challenging the U.S. Securities and Exchange Commission (SEC) for withholding crypto-related documents requested through FOIA. The SEC has rejected Coinbase’s requests, citing potential interference with its law enforcement activities
In a separate lawsuit against the SEC, Coinbase is pressuring the agency to clarify its digital asset approach by court order. The case is under review in a federal appeals court in Philadelphia
Crypto industry figures, such as Custodia Bank CEO Caitlin Long, embraced Coinbase’s new FOIA requests as part of a wider criticism of the unclear crypto policies of the Biden administration and Senator Elizabeth Warren (D-MA), known crypto skeptics
“Biden/Warren’s federal banking agencies will be held accountable for mistreating U.S. banks that support compliant crypto firms,” Long shared on Twitter. “Justice is on the horizon.”
Edited by Andrew Hayward
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In conclusion, the battle between Coinbase and U.S. regulatory agencies continues to intensify as the exchange seeks clarity on the government’s approach to cryptocurrency. By filing legal requests for internal documents with the FDIC and challenging the SEC in court, Coinbase is striving to bring transparency to the murky regulatory landscape surrounding digital assets. With industry leaders and advocates supporting Coinbase’s efforts, the push for regulatory clarity in the crypto space remains a pivotal issue in the ongoing dialogue between the government and the cryptocurrency industry. Stay tuned for further developments as Coinbase navigates the complexities of regulatory oversight in the ever-evolving crypto ecosystem.
