- Coinbase files FOIA requests for clarity on crypto regulations.
- FDIC allegedly imposed 15% deposit cap without public consultation.
Coinbase has intensified its push for regulatory transparency, filing two Freedom of Information Act (FOIA) requests against U.S. agencies. The exchange aims to shed light on the growing restrictions faced by banks dealing with crypto deposits. It particularly targets the Federal Deposit Insurance Corporation (FDIC) and other regulators involved in the cryptocurrency crackdown.
Paul Grewal, Coinbase’s Chief Legal Officer, shared in an October 21 post on X (formerly Twitter) that the first FOIA request seeks information on an alleged 15% deposit cap imposed by the FDIC on banks accepting funds from crypto companies. Coinbase claims that the rule was made without public consultation, which is generally required under U.S. law. The company is pushing for clarification on how this restriction impacts the wider cryptocurrency industry.
Meanwhile, the second FOIA request focuses on how regulators responded to previous FOIA inquiries concerning the treatment of cryptocurrencies. This follows Coinbase’s 2023 legal actions against the FDIC and the U.S. Securities and Exchange Commission (SEC) for allegedly ignoring earlier FOIA requests related to the regulatory classification of Ethereum (ETH) and staking services.
In the past, Coinbase also raised concerns over “pause letters,” which the FDIC allegedly sent to banks, urging them to slow their crypto-related activities.
The Political Drama
This regulatory friction comes amid a broader political debate on cryptocurrency’s future in the U.S. With the 2024 presidential election approaching, pro-crypto figures like Donald Trump have expressed support for making the U.S. a leader in the crypto space, while Democratic candidates, including Kamala Harris, have been less vocal.
The crypto community feels Coinbase’s ongoing regulatory battle reflects its broader effort to advocate for clearer, fairer crypto regulations through its “Stand with Crypto” campaign and political action committee (PAC), launched in early 2024. As Grewal emphasized, Coinbase seems committed to challenging regulatory opacity, stating, “So long as the government will not relent, neither will Coinbase.”
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