CoinDesk Report:
On Monday, Coinbase forced the US government to clarify its handling of cryptocurrencies as the long-standing debate intensifies. The US cryptocurrency exchange submitted legal requests to the Federal Deposit Insurance Corporation (FDIC) for multiple internal documents.
The first request pertains to documents that detail any limits or restrictions imposed by the FDIC on the amount of digital assets allowed to be held. It was submitted under the Freedom of Information Act (FOIA), which requires administrative agencies such as the FDIC to disclose internal information upon public request.
The second request made by Coinbase to the FDIC seeks information regarding the types of FOIA requests submitted to banking regulatory agencies since early 2022. It is speculated that this request is aimed at holding the FDIC accountable if a significant number of cryptocurrency-related information requests have been denied. Recipients of FOIA requests can lawfully refuse them for reasons including the sensitive nature of specific subjects or in the name of respecting personal privacy.
Coinbase’s Chief Legal Officer, Paul Grewal, announced these requests on Monday, viewing them as the latest move in the company’s ongoing struggle to disclose cryptocurrency policies that the US government has essentially kept undisclosed.
“We have submitted two new FOIA requests to continue our efforts to clarify how regulators handle digital assets,” Grewal posted on Twitter. “In short, Coinbase won’t back down as long as the government doesn’t.”
Last week, Coinbase filed a motion in the federal court in Washington, D.C., accusing the US Securities and Exchange Commission (SEC) of improperly withholding cryptocurrency-related documents requested under the FOIA. The SEC has repeatedly denied Coinbase’s FOIA requests, claiming that disclosure of the documents would interfere with its enforcement activities.
Meanwhile, the largest cryptocurrency exchange in the US is actively suing the SEC for continuing to withhold rule-making for cryptocurrencies. Coinbase is attempting to compel the agency to clarify its handling of digital assets through a court order. The case is currently being heard in the federal appeals court in Philadelphia.
Cryptocurrency leaders, including Caitlin Long, CEO of Custodia Bank, celebrated the announcement of the new cryptocurrency-related FOIA requests, linking it to what many industry insiders perceive as the current administration’s intentionally opaque policies on digital assets, exemplified by President Joe Biden’s skepticism towards cryptocurrencies and his close ally in the Senate, Elizabeth Warren (D-MA).
“The lawlessness of the Biden/Warren federal banking apparatus against US banks serving law-abiding crypto companies will continue to be exposed,” tweeted Long on Monday. “Justice is coming, folks.”
Edited by Andrew Hayward.