Key Takeaways
- The first FOIA request seeks documents related to a deposit cap that the FDIC allegedly imposed on financial institutions that hold funds from crypto firms
- The second request is aimed at obtaining records on how the FDIC and other regulatory agencies have handled previous FOIA requests related to crypto.
Coinbase has filed two new Freedom of Information Act (FOIA) requests in an ongoing effort to gain more transparency regarding U.S. cryptocurrency regulations. The first FOIA request seeks documents related to a deposit cap that the Federal Deposit Insurance Corporation (FDIC) allegedly imposed on financial institutions that hold funds from crypto firms.
This cap, reportedly limiting crypto-related deposits to 15%, was implemented without the typical public consultation required by U.S. law, according to Coinbase. The exchange wants to understand how this rule was established and what impact it may have on the broader crypto industry.
The second request is aimed at obtaining records on how the FDIC and other regulatory agencies have handled previous FOIA requests tied to digital assets. Coinbase hopes to uncover more information about how these agencies are managing the release—or withholding—of key documents that may affect the regulation of digital assets. These new requests are separate from earlier FOIA filings, which are now the subject of federal lawsuits filed by Coinbase in 2023.
Coinbase’s legal efforts are part of a larger push for clarity from U.S. regulators. Other companies in the crypto space, like Ripple, are also challenging regulatory bodies like the U.S. Securities and Exchange Commission (SEC) over their approach to digital assets. Ripple’s Chief Legal Officer recently predicted that the SEC’s appeal in its case would likely result in the original ruling being upheld.
Coinbase’s previous legal actions included lawsuits against both the FDIC and the SEC, accusing them of not complying with earlier FOIA requests.
In particular, the company had sought documents from the SEC about the classification of Ethereum (ETH) and its staking pools, but received limited information. Coinbase has also raised concerns about so-called “pause letters” that the FDIC allegedly sent to banks, advising them to slow down or halt activities related to cryptocurrencies.
These new FOIA filings are part of Coinbase’s broader effort to secure more regulatory transparency as the company becomes increasingly involved in shaping the future of crypto regulations in the U.S.
Earlier this year, the company launched its “Stand with Crypto” campaign and formed a Political Action Committee (PAC) to support pro-crypto candidates and policies. With the 2024 U.S. presidential election approaching, Coinbase is looking to ensure that the regulatory landscape for digital assets is clear and fair.
Chief Legal Officer Paul Grewal took to X, stating that Coinbase would continue its efforts to achieve transparency for the crypto industry. “So long as the government will not relent, neither will Coinbase,” he said.
