On October 18, Coinbase filed two new Freedom of Information Act (FOIA) requests seeking clarity on the regulation of cryptocurrencies in the United States.
The new request is directed to the Federal Deposit Insurance Corporation (FDIC) and was filed by History Associates Incorporated on behalf of the exchanges.
Paul Grewal, Coinbase's chief legal officer, said one of the demands is to clarify the 15% deposit cap allegedly imposed on digital asset companies. The request alleges that banks such as Signature Bank, Customers Bank, Cross River Bank, Western Alliance Bank and Silver Gate Bank are subject to a 15% deposit limit.
The requested documents include communications between FDIC board members, staff, custodians, Federal Reserve System and Treasury Office of the Comptroller of the Currency (OCC) dating back to June 1, 2022. are.
In particular, if the FDIC invokes a FOIA exemption or withholds relevant information, Coinbase requires a detailed explanation of the reasons for non-disclosure.
Agencies and FOIA requests
The second request relates to understanding how regulators handle FOIA requests. The exchange requested FDIC and OCC FOIA logs from January 1, 2022 to October 1, 2022.
This request specifies that these logs be provided in a text-searchable format and emphasizes the importance of accessibility and transparency when processing these documents.
By tracking the flow of FOIA requests, Coinbase aims to understand government agencies' approaches to releasing (or withholding) information, particularly information that may be relevant to digital asset regulation.
While this specific request does not directly ask for details about regulatory decisions, it does indicate the exchange's focus on clarifying the administrative processes behind those decisions.
By requesting FOIA logs, Coinbase can track patterns in regulators' responses to inquiries and potentially identify trends that shed light on how financial watchdogs manage information related to cryptocurrencies.
Caitlin Long, chief executive officer of Custody Bank, said federal banking regulators' “lawlessness” against U.S. banks that serve crypto companies as customers “will continue to be exposed.”
Other FOIA requests
Grewal also emphasized that both requests are separate from the FOIA requests filed by Coinbase in July 2023 and directed to the SEC.
The request asked for clarification on how regulators take enforcement actions against crypto companies and the basis they use to designate certain digital assets as securities.
On October 18, Coinbase filed a motion for partial summary judgment in its lawsuit against the SEC, seeking the release of internal documents related to the SEC's enforcement strategy against the crypto industry.
This follows delays in the SEC's filing of documents that were initially withheld under the Freedom of Information Act (FOIA). Coinbase argues that the SEC's delays are unreasonable and is seeking clarity on how the SEC applies securities laws to crypto assets, highlighting its broader efforts to challenge the regulator's approach. are.
