Coinbase has asked U.S. banking regulators to disclose information about apparent “digital asset deposit caps” it imposes on financial institutions, according to Paul Grewal, the exchange’s chief legal officer. He says he is looking for it.
Grewal said the company has filed a new Freedom of Information Act (FOIA) request with the Federal Deposit Insurance Corporation (FDIC) for documents related to “the imposition of formal or unofficial caps, limitations, caps, maximums, etc.” I pointed out that I had requested a copy. Restricting or inhibiting deposits from digital asset companies at depository financial institutions “including, but not limited to, Signature Bank, Customers Bank, Cross River Bank, Western Alliance Bank, and Silvergate Bank.”
The FOIA application requests documents and communications on this topic between the FDIC, third-party depositaries, the Federal Reserve Board, the Treasury Department’s Office of the Comptroller of the Currency, and members of the media.
Coinbase also filed a FOIA request with the FDIC seeking internal logs showing how it responds to other FOIA requests.
Top US cryptocurrency exchanges are in the midst of multiple legal battles with US regulators. In June 2023, the Securities and Exchange Commission (SEC) sued Coinbase for allegedly violating securities laws, including selling unregistered securities and operating an unregistered exchange/broker agency.
And in June, the exchange filed a countersuit against the SEC and FDIC, accusing the regulators of acting outside their jurisdiction, attempting to “paralyze” the crypto industry, and trying to circumvent FOIA requests.
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