Coinbase Files Two FOIA Requests Against US Regulators Over Crypto Banking Censorship

Leading US-based crypto exchange Coinbase has filed two Freedom of Information Act (FOIA) requests against US regulators. The exchange seeks information regarding crypto restrictions on US banks, a move to establish regulatory clarity in the industry.

The crypto exchange directed its recent requests at the Federal Deposit Insurance Corporation (FDIC) over its crackdown on crypto-friendly banks. History Associates Incorporated handled the filed requests on behalf of Coinbase.

These latest filings differ from the exchange's past request directed at the US Securities and Exchange Commission (SEC).

Coinbase Files Two Requests Against FDIC

In an X post, Coinbase Chief Legal Officer Paul Grewal revealed the exchange filed two Federal of Information Act (FOIA) requests against US regulators.

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

According to Grewal, Coinbase directed the filings at the Federal Deposit Insurance Corporation (FDIC), the US agency that insures bank deposits. The exchange demands details regarding the ongoing crypto crackdown on US crypto-friendly banks.

Further, Coinbase CLO highlighted the details of the recent motions handled by History Associated Incorporated on behalf of the exchange. According to the executive, the first request seeks details on the FDIC's imposed deposit cap for digital assets on crypt-friendly banks.

Grewal stated: The first is for documents about a digital asset deposit cap the FDIC and other banking regulators have apparently been imposing on financial institutions."

The second request seeks clarity and documentation on how the regulators handle other previous FOIA requests.

The FDIC reportedly imposed a crypto deposit cap of 15% of total deposits on crypto-friendly banks and financial entities. Moreover, the agency initiated the rule without prior public comments, which serves as the basis for banking regulators under US law.

In the filed documents, Coinbase pointed out that the crypto depository restrictions affected several banks, including Customers Bank, Signature Bank, Cross River Bank, Silvergate Bank, and Western Alliance Bank.

Coinbase Continuous Demand For Clarity in U.S. Crypto Regulations

Coinbase has continued to demand clarity in crypto regulations from US regulators. Grewal explained that the recent requests differ from those filed last year.

In 2023, the SEC sued Coinbase for operating without registration as a securities exchange, broker, and clearing agency.

Meanwhile, Coinbase demanded clarity from the SEC on the commission's approach to enforcement actions against crypto companies. The exchange demanded information regarding the SEC's basis for classifying certain digital assets as securities.

However, in June this year, Coinbasefiledlawsuits against the SEC and the FDIC for not complying with past requests for public disclosures.

Additionally, the exchange filed a motion for partial summary judgment in its suit with the SEC last week. In its documents, Coinbase requested the release of internal records regarding the regulator's enforcement strategies on the crypto industry.

This move came as the securities regulator delayed providing documents it withheld under the Freedom of Information Act (FOIA).

In line with its commitment to clarity in crypto regulation, Coinbase launched the Stand with Crypto" initiative. This aims to support pro-crypto candidates in the US elections and runs a political action committee (PAC).

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