Coinbase Files Dual FOIA Requests Demanding Transparency On US Crypto Crackdown

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As a seasoned crypto investor with a keen eye for regulatory battles and their impact on the market, I find Coinbase’s latest moves to be both strategic and necessary. Having navigated through the volatile waters of digital asset investing for years now, I have learned that clarity from regulators is as crucial as the next big pump or dump.

On a Monday, it was revealed that Coinbase’s top legal official, Paul Grewal, has intensified the company’s legal actions against U.S. regulators. This is being done by submitting two additional sets of requests under the Freedom of Information Act (FOIA).

Grewal underscored the importance of understanding the government’s stance on digital assets, saying in essence, “As long as the government remains firm, so does Coinbase.

Coinbase Aims To Reveal Crucial Regulatory Communications

The initial Freedom of Information Act (FOIA) request is asking for records concerning the deposit limit set by the Federal Deposit Insurance Corporation (FDIC) and other regulatory bodies on banks regarding digital assets.

The second inquiry is intended to collect data about how these institutions handle Freedom of Information Act (FOIA) requests similar to those made more than a year ago, which are now part of ongoing federal court cases.

In his latest update, Grewal discussed the expansive nature of the newly submitted requests. These inquiries aim to encompass all records and correspondences shared among officials from several regulatory entities such as the Office of the Comptroller of the Currency within the Treasury, the Federal Deposit Insurance Corporation (FDIC), and the Federal Reserve Board.

The focus of these documents should be on regulations involving limits or controls on digital asset company deposits at banks such as Signature Bank and Silvergate Bank, effective from June 1, 2022, and any related historical information.

In the specified query, the term “documents” is broadly interpreted to encompass a variety of items such as agreements, emails, meeting summaries, and other pertinent correspondence. The aim is to gather all this information to gain a complete understanding of how regulatory bodies are managing digital asset deposit restrictions.

Clarity On Securities Laws Application

The dispute between exchanges and U.S. regulators has roots traced back to a Freedom of Information Act (FOIA) request filed by History Associates on behalf of Coinbase in the past. This request was turned down by the Securities and Exchange Commission (SEC), who cited an exemption under FOIA that pertains to records generated for ongoing investigations related to law enforcement.

Besides making Freedom of Information Act (FOIA) requests, Coinbase has also asked a court for an order to force the Securities and Exchange Commission (SEC) to reveal their internal documents. These documents might provide clarity on how securities regulations apply to digital assets.

The collection encompasses papers pertaining to Ethereum‘s shift towards a proof-of-stake validation system, as well as files related to Enigma MPC and Zachary Coburn, who have previously settled cases with the SEC.

Regardless of their efforts, Coinbase has voiced discontent over the SEC’s limited reaction, providing just three heavily censored pages. The SEC continues to claim that additional documents are being concealed using the same exemption.

History Associates, who acts on behalf of Coinbase in the Freedom of Information Act (FOIA) case, asserts that according to FOIA regulations, government agencies must release pertinent records unless they can unequivocally prove they fit within specific statutory exceptions. In response, the regulatory body asked for more time.

At the time of writing, the exchange’s shares, COIN, are trading at $213.

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2024-10-22 17:42