Coinbase files FOIA requests targeting FDIC over crypto banking restrictions

Coinbase filed two new Freedom of Info Act (FOIA) requests on October 18, in search of readability on crypto laws within the US.

The brand new requests are addressed to the Federal Deposit Insurance coverage Company (FDIC) and had been filed on behalf of the change by Historical past Associates Included.

Coinbase Chief Authorized Officer Paul Grewal stated one of many requests is to make clear a 15% deposit restrict that has reportedly been imposed on digital asset firms. The petition claims that the 15% deposit cap has been imposed on banks akin to Signature Financial institution, Clients Financial institution, Cross River Financial institution, Western Alliance Financial institution and Silvergate Financial institution.

Among the many paperwork requested are interactions courting again to June 1, 2022, between FDIC board members, employees, depository establishments and officers of the Federal Reserve and the Treasury’s Workplace of the Comptroller of the Monet (OCC).

Notably, if the FDIC invokes any FOIA exemptions or withholds related data, Coinbase has requested an in depth clarification of the explanations for non-disclosure.

Companies and FOIA Requests

The second request pertains to understanding how regulators have dealt with FOIA requests. The change requested FDIC and OCC FOIA logs from January 1, 2022 to October 1.

The request specifies that these logs be supplied in a text-searchable format, emphasizing the significance of ease of entry and transparency within the processing of those paperwork.

By monitoring the circulate of FOIA requests, Coinbase goals to know the businesses’ strategy to releasing (or withholding) data, particularly data that will relate to digital asset laws.

Whereas this particular request doesn’t straight search particulars about regulatory selections, it demonstrates the change’s give attention to clarifying the executive processes behind these selections.

By asking for FOIA logs, Coinbase can monitor patterns in regulators’ responses to queries, probably figuring out developments that might reveal how crypto-related data is managed by monetary watchdogs.

Caitlyn Lengthy, CEO of Custodia Financial institution, acknowledged that the “lawlessness” of federal banking regulators in the direction of US banks which have crypto firms as prospects “will proceed to be uncovered.”

Different FOIA Requests

Grewal additionally emphasised that each requests are separate from the FOIA-based requests filed by Coinbase in July 2023 that had been addressed to the SEC.

The requests sought clarification on how the regulator carries out enforcement actions towards crypto firms and the premise it makes use of to categorise sure digital property as securities.

Coinbase filed a movement for partial abstract judgment in its lawsuit towards the SEC on October 18, in search of the discharge of inside paperwork associated to the company’s enforcement methods towards the crypto business.

This follows the SEC’s delays in producing paperwork initially withheld beneath the Freedom of Info Act (FOIA). Coinbase says the SEC’s delays are unwarranted and seeks readability on how the company applies securities legal guidelines to crypto property, highlighting a broader effort to problem the regulator’s strategy.

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