Coinbase Files FOIA Request Demanding Clarity on Alleged Cap Imposed on Crypto Deposits to Banks

Coinbase needs U.S. banking regulators to launch details about an obvious “digital asset deposit restrict” they imposed on monetary establishments, in line with Paul Grewal, the change’s chief authorized officer (CLO).

Grewal notes that the corporate has filed a brand new Freedom of Info Act (FOIA) request with the Federal Deposit Insurance coverage Company (FDIC), requesting copies of paperwork associated to “the imposition of a proper or casual restrict, restrict, ceiling, most or different restriction or restraint on digital asset firms’ deposits at depository establishments, together with however not restricted to Signature Financial institution, Clients Financial institution, Cross River Financial institution, Western Alliance Financial institution and Silvergate Financial institution.

The FOIA request requests paperwork and communications on the topic exchanged between the FDIC and third-party depository establishments, the Board of Governors of the Federal Reserve System, the Treasury’s Workplace of the Comptroller of the Monet, and members of the press.

Coinbase has additionally filed a FOIA request with the FDIC for inner logs displaying the way it handles different FOIA requests.

The highest US cryptocurrency change is within the midst of a number of authorized battles with US regulators: The Securities and Alternate Fee (SEC) sued Coinbase in June 2023 for allegedly violating securities legal guidelines, together with promoting unregistered securities and working an unregistered -registered inventory change/brokerage company.

And in June, the change filed a countersuit towards the SEC and FDIC, accusing the regulators of performing outdoors their jurisdiction, attempting to “cripple” the crypto business and avoiding FOIA requests.

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