The firm is demanding answers about why the government is suppressing cryptocurrencies
Coinbase has taken steps to push for more transparency regarding the US government’s stance on cryptocurrency. The company filed two Freedom of Information Act (FOIA) requests aimed at uncovering how regulators are managing digital assets, particularly in the banking sector. Paul Grewal, Coinbase’s CLO, announced the move recently, highlighting concerns over the lack of clarity in regulatory practices.
We filed two new sets of FOIA requests in our continued effort to get any sort of clarity on how regulatory agencies are approaching digital assets. In short, so long as the government will not relent, neither will @coinbase. 1/3
— paulgrewal.eth (@iampaulgrewal) October 21, 2024
One of the FOIA requests focuses on a reported decision by the Federal Deposit Insurance Corporation (FDIC) and other banking regulators to impose limits on cryptocurrency-related deposits. The FDIC allegedly capped deposits from crypto companies at 15% of a bank’s total deposits, a measure introduced without public input. Coinbase is seeking documentation and explanations behind this policy, as the firm believes regulators should be more open about their decision-making process, especially when it impacts a growing industry like cryptocurrency.
The second FOIA request centers on how regulators have responded to past FOIA requests related to cryptocurrency. Coinbase is keen to understand the government’s actions in similar situations to grasp the full picture of how digital assets are being handled by US authorities.
These recent actions come as part of Coinbase’s broader efforts to get more information from regulatory bodies like the FDIC and the Securities and Exchange Commission (SEC). Earlier this year, Coinbase filed lawsuits against both agencies, accusing them of failing to comply with previous FOIA requests regarding crypto regulations, including the SEC’s classification of Ether (ETH) and its stance on ETH staking pools.
Through these requests, Coinbase is pressing for transparency and hoping to influence clearer, more supportive regulatory frameworks for the digital asset space.
