Coinbase, one of the top cryptocurrency exchanges in the US, is seeking transparency from banking regulators regarding a supposed “digital asset deposit cap” that they have been imposing on financial institutions. Paul Grewal, the Chief Legal Officer of Coinbase, has filed a Freedom of Information Act (FOIA) request with the Federal Deposit Insurance Corporation (FDIC) to obtain documents related to this cap.
The FOIA request specifically asks for information on any restrictions or restraints placed on deposits from digital asset companies at depository institutions such as Signature Bank, Customers Bank, Cross River Bank, Western Alliance Bank, and Silvergate Bank. Coinbase is also seeking communication records between the FDIC and these institutions, as well as other regulatory bodies like the Federal Reserve and the Office of the Comptroller of the Currency.
In addition to the FOIA request regarding the deposit cap, Coinbase has also filed a separate request with the FDIC for internal logs that show how the agency handles other FOIA requests. This move highlights Coinbase’s commitment to transparency and accountability in its interactions with regulators.
Coinbase is currently embroiled in legal disputes with US regulators, including a lawsuit filed by the Securities and Exchange Commission (SEC) in June 2023. The SEC accused Coinbase of violating securities laws by selling unregistered securities and operating an unregistered exchange. In response, Coinbase filed a counter-lawsuit against the SEC and the FDIC, alleging overreach and an attempt to stifle the crypto industry.
As Coinbase continues to navigate these legal challenges, its efforts to obtain information through FOIA requests demonstrate its commitment to understanding and addressing regulatory issues. By seeking transparency and engaging with regulators, Coinbase aims to foster a more open and collaborative relationship with the authorities overseeing the cryptocurrency industry.
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Overall, Coinbase’s proactive approach to engaging with regulators and seeking transparency underscores its dedication to compliance and regulatory adherence in the dynamic and evolving landscape of digital assets.