The US government has announced that it is using US cryptocurrency exchange Coinbase to hold its digital assets.
The US Marshals Service (USMS), a subdivision of the Department of Justice (DOJ), has revealed that it is taking custody of digital assets at Coinbase as part of its program to manage and dispose of large amounts of “Class 1” cryptocurrencies.
“The Department of Justice (DOJ) U.S. Marshals Service (USMS) on behalf of the Asset Forfeiture Division (AFD) has a requirement to manage and dispose of large amounts of popular cryptocurrency assets, known as Class 1 cryptocurrencies. This requires the use of multiple, industry-leading storage and liquidation techniques applied in a manner that is professional, legal, and consistent with Department and USMS policies.
This contract will also streamline the custody, management and disposal processes for cryptocurrency assets while allowing for the diversification of the types of cryptocurrency assets that can be managed and disposed of under government forfeiture programs.”
According to the government, it has a $32.52 million contract with Coinbase to implement the program.
In a blog post, Coinbase said it has a “long history” of working with government agencies.
“Coinbase has a long history of supporting law enforcement agencies, dating back to the creation of our law enforcement program in 2014. Today, Coinbase works with all major U.S. federal, state and local law enforcement agencies, as well as international agencies in every area. continent.
Growing the crypto economy means fostering secure and efficient markets, and these partnerships are critical to our mission.”
Despite the government using Coinbase to hold and trade cryptocurrencies, the U.S. Securities and Exchange Commission (SEC) is in the middle of a lawsuit against the exchange over allegations that it sells unregistered securities.
Coinbase’s Chief Legal Officer, Paul Grewal, has said the SEC is out to “stifle” the industry.
“Remarkably, the SEC says time and time again that it doesn’t matter whether the industry can comply with the rules. The SEC is bent on stifling the digital asset industry and is refusing to provide the necessary regulations the industry has requested to reduce the pressure.”
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