Coinbase, the leading U.S. cryptocurrency exchange, has filed two Freedom of Information Act (FOIA) requests with U.S. regulators. Exchange seeks information on U.S. bank cryptocurrency restrictions, move aimed at creating industry regulatory transparency.
The cryptocurrency exchange recently filed a request with the Federal Deposit Insurance Corporation (FDIC) to crack down on crypto-friendly banks. History Associates Incorporated handled the submitted request on behalf of Coinbase.
These latest filings differ from past requests the exchange has made to the U.S. Securities and Exchange Commission (SEC).
Coinbase files two requests against FDIC
Coinbase Chief Legal Officer Paul Grewal revealed in an X post that the exchange filed two Federal Information Act (FOIA) requests with U.S. regulators.
The first is a document regarding digital asset deposit caps @FDICgov and other banking regulators have apparently been putting pressure on financial institutions. The second is logs showing how the agencies handled other FOIA requests. Each one is separate from our FOIA file…
— paulgrewal.eth (@iampaulgrewal) October 21, 2024
According to Grewal, Coinbase filed documents with the Federal Deposit Insurance Corporation (FDIC), the U.S. agency that insures bank deposits. Exchange Asks for Details About U.S. Crypto-Friendly Bank’s Ongoing Cryptocurrency Crackdown.
Additionally, Coinbase CLO highlighted details of a recent motion handled by History Associated Incorporated on behalf of the exchange. According to the executive, the first request seeks details on the FDIC’s cap on digital asset deposits for crypto-friendly banks.
“The first is a document regarding the digital asset deposit caps that the FDIC and other bank regulators have apparently imposed on financial institutions,” Grewal said.
The second request seeks clarification and documentation of how regulators handled other previous FOIA requests.
The FDIC reportedly caps cryptocurrency deposits at 15% of total deposits for crypto-friendly banks and financial entities. Furthermore, the agency initiated the rule without prior public consultation, which is a cornerstone of bank regulators under U.S. law.
Coinbase noted in its filing that the cryptocurrency deposit restrictions affect multiple banks, including Customer Bank, Signature Bank, Cross River Bank, Silvergate Bank and Western Alliance Bank.
Coinbase continues to demand clarity on U.S. cryptocurrency regulations
Coinbase continues to demand clarity on cryptocurrency regulations from U.S. regulators. Grewal explained that the latest request is different from one filed last year.
In 2023, the U.S. Securities and Exchange Commission (SEC) sued Coinbase does not require registration to operate as a stock exchange, broker and clearing house.
Meanwhile, Coinbase is asking the SEC to clarify the commission’s approach to taking enforcement actions against cryptocurrency companies. The exchange requested information about the SEC’s basis for classifying certain digital assets as securities.
However, in June this year, Coin library submit Litigation brought against SEC and FDIC for failure to comply with past public disclosure requirements.
In addition, the exchange submit A partial summary judgment motion was filed in a lawsuit filed last week with the Securities and Exchange Commission. In its filing, Coinbase requested the release of internal records regarding the regulator’s enforcement strategy against the crypto industry.
The move comes as securities regulators delay the release of documents withheld under the Freedom of Information Act (FOIA).
In line with its commitment to regulatory clarity on cryptocurrencies, Coinbase has launched the “Standing with Cryptocurrency” initiative. It aims to support pro-cryptocurrency candidates in US elections and set up a political action committee (PAC).
