Breaking: Coinbase Files Two New FOIA Requests In Bid To Gain Regulatory Clarity

Coinbase has filed two new requests based on the Freedom of Information Act (FOIA) as they seek to gain regulatory clarity for the crypto industry and crypto assets in general. The crypto exchange’s Chief Legal Officer (CLO), Paul Grewal, revealed the details of the filings and mentioned the documents they hoped to obtain with each request.

Coinbase Files New Motions To Gain Regulatory Clarity

Coinbase’s CLO Paul Grewal revealed in an X post that they had filed two new sets of FOIA requests in their continued effort to gain clarity on how US regulators are approaching digital assets. He remarked that the top crypto exchange will not relent in their efforts to provide the industry with some clarity. Grewal went on to provide insights into the specific details of each request.

He mentioned that the first request was for documents about a digital asset deposit cap that the Federal Deposit Insurance Corporation (FDIC) and other banking regulators had imposed on financial institutions. Meanwhile, the second request is for logs showing how these agencies handle other FOIA requests. He remarked that these requests are separate from their FOIA filings from over a year ago, which are now the subject of federal lawsuits.

US crypto firms continue to push for clarity from regulators. Alongside Coinbase, Ripple is another crypto firm currently battling with the US Securities and Exchange Commission (SEC) to ensure clarity for the crypto industry and digital assets.

Ripple CLO Stuart Alderoty recently revealed the likely outcome of the SEC’s appeal against the crypto firm. He stated that the US Second Circuit will most likely affirm Judge Analisa Torres’ ruling. He added that the best the regulator could hope for is a remand to the lower court.

The Significance Of The First Request

Coinbase’s request for the digital asset deposit cap by the FDIC and other banking regulators is significant as it borders on the alleged crackdown by the Biden administration on the crypto industry through what is famously known as ‘Operation Choke Point.’ The filing stated that the request relates to the,

imposition of a formal or informal cap, limit, ceiling, maximum, or other restriction or restraint on deposits from digital asset companies at depository institutions, including but not limited to Signature Bank, Customers Bank, Cross River Bank, Western Alliance Bank, and Silvergate Bank, and that was created or transmitted between June 1, 2022 and the date you process this request.

Crypto-friendly Silvergate Bank filed for bankruptcy this year after it shut down last year. Interestingly, Chief Administrative Officer Elaine Hetrick suggested in a court filing that the “increased supervisory pressure” on the bank forced them to wind down, not FTX’s collapse, as many thought.