Coinbase filed two new Freedom of Information Act (FOIA) requests on October 18, seeking clarity on crypto regulations in the US.
The new requests are addressed to the Federal Deposit Insurance Corporation (FDIC) and were filed on behalf of the exchange by History Associates Incorporated.
Coinbase Chief Legal Officer Paul Grewal said one of the requests is to clarify a 15% deposit limit that has reportedly been imposed on digital asset companies. The petition claims that the 15% deposit cap has been 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, between FDIC board members, staff, depository institutions and officials of the Federal Reserve and the Treasury’s Office of the Comptroller of the Monet (OCC).
Notably, if the FDIC invokes any FOIA exemptions or withholds relevant information, Coinbase has requested a detailed explanation of the reasons for non-disclosure.
Agencies and FOIA Requests
The second request relates to understanding how regulators have handled FOIA requests. The exchange requested FDIC and OCC FOIA logs from January 1, 2022 to October 1.
The request specifies that these logs be provided in a text-searchable format, emphasizing the importance of ease of access and transparency in the processing of these documents.
By monitoring the flow of FOIA requests, Coinbase aims to understand the agencies’ approach to releasing (or withholding) information, especially information that may relate to digital asset regulations.
While this specific 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 queries, potentially identifying trends that could reveal how crypto-related information is managed by financial watchdogs.
Caitlyn Long, CEO of Custodia Bank, stated that the “lawlessness” of federal banking regulators towards US banks that have crypto companies as customers “will continue to be exposed.”
Other FOIA Requests
Grewal also emphasized that both requests are separate from the FOIA-based requests filed by Coinbase in July 2023 that were addressed to the SEC.
The requests sought clarification on how the regulator carries out enforcement actions against crypto companies and the basis it uses to classify certain digital assets as securities.
Coinbase filed a motion for partial summary judgment in its lawsuit against the SEC on October 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 says the SEC’s delays are unwarranted and seeks clarity on how the agency applies securities laws to crypto assets, highlighting a broader effort to challenge the regulator’s approach.