On October 18, Coinbase filed two new Freedom of Information Act (FOIA) requests aimed at gaining regulatory clarity regarding the treatment of digital assets in the United States. These requests are directed at the Federal Deposit Insurance Corporation (FDIC) and the of the Comptroller of the Currency (OCC), marking a significant step in Coinbase’s ongoing efforts to navigate the complex regulatory landscape surrounding cryptocurrencies.
One of the primary requests seeks information about a **15% deposit cap allegedly imposed on banks servicing digital asset companies. Coinbase claims this cap has affected banks such as Signature Bank, Customers Bank Cross River Bank , Western Alliance Bank, and Silvergatee. The request aims to uncover communications among FDIC board members and other regulatory officials dating back to June 1, 2022.
The existence of such a cap could indicate a broader regulatory strategy to limit banking services available to cryptocurrency firms, which many in the industry view as part of a crackdown on digital assets.
The second request focuses on obtaining logs related to how the FDIC and OCC handle other FOIA requests from January 1, 2022, to October 1, 2024. Coinbase emphasizes that these logs should be provided in a text-searchable format to facilitate transparency and ease of access.
By analyzing these logs, Coinbase aims to gain insights into how federal agencies manage inquiries related to digital assets, which could inform their strategies for compliance and advocacy.
These new FOIA requests are separate from previous filings made by Coinbase in July 2023, which targeted the SEC. Those earlier requests sought clarity on how the SEC conducts enforcement actions against crypto firms and its criteria for designating certain digital assets as securities.
Coinbase has been actively challenging regulatory bodies in court. Recently, it filed a motion for partial summary judgment against the SEC, seeking access to internal documents that outline the agency’s enforcement strategies regarding cryptocurrencies. This legal action follows delays by the SEC in producing requested documents under FOIA.
The filing of these FOIA requests reflects a growing frustration within the cryptocurrency community regarding regulatory uncertainty. Other firms, like Ripple, are also engaged in legal battles with regulators to clarify their status and operational frameworks.
Critics argue that federal regulators have been using tactics reminiscent of “Operation Choke Point,” which aimed to restrict banking access for certain industries deemed high-risk. This has raised alarms about potential overreach that could stifle innovation within the crypto sector.