Coinbase, the popular cryptocurrency exchange, has taken legal action by filing two Freedom of Information Act (FOIA) requests against US regulators. The requests are aimed at obtaining information about the ongoing crackdown on cryptocurrencies by US banks. Paul Grewal, Coinbase’s chief legal officer, stated that the company is seeking clarity on how regulatory agencies are approaching digital assets.
The first FOIA request is for documents related to a deposit cap on digital assets imposed by the Federal Deposit Insurance Corporation (FDIC) and other banking regulators. The FDIC has reportedly asked banks to limit deposits from crypto companies to 15% of their total deposits. Coinbase’s second FOIA request is to gain insight into how regulators have responded to previous crypto-related FOIA requests.
Grewal emphasized that these new requests are separate from the FOIA filings made by Coinbase over a year ago, which are currently the subject of federal lawsuits. In those lawsuits, Coinbase accused the US Securities and Exchange Commission and the FDIC of failing to comply with previous requests for public disclosures. In one instance, Coinbase asked the SEC to disclose documents regarding the classification of Ether (ETH), a popular cryptocurrency.
Coinbase’s actions reflect its commitment to obtaining transparency from regulatory agencies. The company has also sent FOIAs to the FDIC seeking information about “pause letters” allegedly sent to banks to slow down the growth of crypto-related banking activities. This move is part of Coinbase’s Stand with Crypto project, which aims to advocate for sensible regulation of digital assets. The project launched a political action committee (PAC) in March to support candidates who are pro-crypto.
The upcoming US presidential election has put a spotlight on candidates’ views on cryptocurrencies. Three out of four crypto owners have stated that a candidate’s crypto policy will impact their vote. Republican nominee Donald Trump has expressed his desire to make the US “the crypto capital of the world,” while Democrat Kamala Harris has been relatively quiet on the industry. According to Galaxy Research, Vice President Harris is more crypto-friendly than President Joe Biden but not as pro-industry as former President Trump.
In the midst of these developments, Trezor CEO has warned that Bitcoin ETFs make Coinbase a target for hackers and governments due to the increased attention and potential regulation associated with such financial instruments.