Coinbase, one of the leading cryptocurrency exchanges, has taken a proactive approach to seek regulatory clarity for the crypto industry in the United States. On October 18, the exchange filed two new Freedom of Information Act (FOIA) requests with the Federal Deposit Insurance Corporation (FDIC) through History Associates Incorporated.
The first FOIA request aims to clarify a 15% deposit cap that was allegedly imposed on digital asset companies by banks such as Signature Bank, Customers Bank, Cross River Bank, Western Alliance Bank, and Silvergate Bank. Coinbase’s chief legal officer, Paul Grewal, emphasized the importance of understanding the basis for this deposit cap and how it affects the operations of crypto companies.
The request also includes interactions dating back to June 1, 2022, among FDIC board members, staff, depository institutions, and officials from the Federal Reserve and the Treasury’s Office of the Comptroller of the Currency (OCC). In the event that the FDIC withholds any information citing FOIA exemptions, Coinbase has requested a detailed explanation for non-disclosure.
The second FOIA request focuses on obtaining FDIC and OCC FOIA logs from January 1, 2022, to October 1. By analyzing these logs in a text-searchable format, Coinbase aims to track how regulatory agencies handle FOIA requests and gain insights into their approach to releasing or withholding information related to digital asset regulations.
Coinbase’s proactive stance towards seeking regulatory clarity also extends to its previous FOIA requests filed with the Securities and Exchange Commission (SEC) in July 2023. These requests sought clarification on the SEC’s enforcement actions against crypto firms and the criteria used to designate digital assets as securities.
In a recent development, Coinbase filed a motion for partial summary judgment in its lawsuit against the SEC, requesting the release of internal documents related to the agency’s enforcement strategies in the crypto industry. The exchange has raised concerns about the SEC’s delays in producing documents withheld under the FOIA, highlighting a broader effort to challenge the regulator’s approach to applying securities laws to crypto assets.
Overall, Coinbase’s FOIA requests reflect its commitment to transparency and regulatory compliance in the rapidly evolving crypto industry. By seeking clarity on regulatory decisions and administrative processes, the exchange aims to navigate the complex regulatory landscape and foster a more informed and transparent ecosystem for digital assets.