Coinbase files FOIA requests targeting FDIC over crypto banking restrictions Coinbase files FOIA requests targeting FDIC over crypto banking restrictions
The requests differ from the ones directed at the SEC in 2023 and seek clarity over alleged FDIC misconduct against crypto friendly banks.
2 min read
Updated: Oct. 21, 2024 at 8:03 pm UTC
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Coinbase filed two new Freedom of Information Act (FOIA) requests on Oct. 18, seeking regulatory clarity for crypto in the US.
The new requests are directed at the Federal Deposit Insurance Corporation (FDIC) and were filed by History Associates Incorporated on behalf of the exchange.
Coinbase chief legal officer Paul Grewalย said one of the requests is to clarify a 15% deposit cap allegedly imposed on digital asset companies. The request claims that the 15% deposit cap was imposed on banks such as Signature Bank, Customers Bank, Cross River Bank, Western Alliance Bank, and Silvergate Bank.
Among the documents requested are interactions dating back to June 1, 2022, among FDIC board members, staff, depository institutions, and officials from the Federal Reserve and the Treasury’s Office of the Comptroller of the Currency (OCC).
Notably, should the FDIC invoke any FOIA exemptions or withhold relevant information, Coinbase has asked for a detailed explanation of the reasons for non-disclosure.
Agencies and FOIA requests
The second request is related to understanding how regulatory agencies have handled FOIA requests. The exchange has requested FDIC and OCC FOIA logs from Jan. 1, 2022, to Oct. 1.
The request specifies that these logs be provided in a text-searchable format, emphasizing the importance of ease of access and transparency in processing these documents.
By tracking the flow of FOIA requests, Coinbase aims to understand the agencies’ approach to releasing โ or withholding โ information, particularly any that might relate to digital asset regulations.
While this particular request does not directly seek details about regulatory decisions, it demonstrates the exchange’s focus on clarifying the administrative processes behind those decisions.
By asking for FOIA logs, Coinbase can track patterns in regulators’ responses to inquiries, potentially identifying trends that could reveal how crypto-related information is managed by financial watchdogs.
Custodia Bank CEO Caitlyn Long stated that federal banking regulators’ “lawlessness” toward US banks that have crypto companies as clients will “continue to be exposed.”
Other FOIA requests
Grewal also highlighted that both requests are separate from the FOIA-based requests filed by Coinbase in July 2023, which were directed at the SEC.
The requests sought clarification on how the regulator conducts enforcement actions against crypto firms and the basis it uses to designate certain digital assets as securities.
Coinbase filed a motion for partial summary judgment in its lawsuit against the SEC on Oct. 18, seeking the release of internal documents related to the agency’s enforcement strategies toward the crypto industry.
This follows the SEC’s delays in producing documents initially withheld under the Freedom of Information Act (FOIA). Coinbase contends that the SEC’s delays are unjustified and seeks clarity on how the agency applies securities laws to crypto assets, highlighting a broader effort to challenge the regulator’s approach.
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Gino Matos
Gino Matos is a law school graduate and a seasoned journalist with six years of experience in the crypto industry. His expertise primarily focuses on the Brazilian blockchain ecosystem and developments in decentralized finance (DeFi).
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Coinbase
Coinbase is a digital currency exchange and wallet service that allows individuals to buy, sell, and store digital currencies, such as Bitcoin, Ethereum, and Litecoin.
Paul Grewal is the Chief Legal Officer of Coinbase where he is responsible for Coinbaseโs legal, compliance, global intelligence, risk management and government relations groups.