Coinbase has taken a bold step by filing two Freedom of Information Act (FOIA) requests against U.S. regulators. The aim is to uncover details about the ongoing crackdown on cryptocurrency among banks in the country.
According to Coinbase’s Chief Legal Officer, Paul Grewal, the company is determined to clarify how digital assets are regulated. “So long as the government will not relent, neither will Coinbase,” Grewal stated.
First, there is a request for documents under FOIA related to a possible cap on regulators like the FDIC regarding digital asset deposits.
However, the second request seeks records reflecting how these agencies process other FOIA requests. These steps follow earlier FOIA filings by Coinbase that are now part of federal lawsuits.
Coinbase is targeting the suspected 15% limit on digital asset deposits by banks, which could affect institutions like Signature Bank and Silvergate Bank.
Coinbase seeks communication between regulators and banks
The exchange is looking for any communications between regulators and banks about this restriction. They want clarity on how decisions are made and which institutions are involved.
Additionally, the second request asks for detailed logs of how regulators have responded to other FOIA requests, which might turn up information on how forthcoming these agencies have been on inquiries about cryptocurrency regulations.
These filings come amidst broad scrutiny of crypto activities in the United States, with regulators pushing for tighter control. Coinbase litigation reflects what many would refer to as regulatory uncertainty in the digital asset space.
However, the exchange now seeks a more open and transparent discussion with the authorities so that there is equity in dealing with all parties involved within the crypto space.
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