Coinbase Files FOIA Requests for Clarity on US Crypto Actions

On Monday, Paul Grewal, Coinbase’s Chief Legal Officer, revealed that the exchange is intensifying its legal initiatives in the ongoing confrontation with US regulators by submitting two new sets of Freedom of Information Act (FOIA) requests.

Grewal highlighted the importance of securing clarity on how regulatory bodies are handling digital assets, stating, “In short, so long as the government will not relent, neither will Coinbase.”

Coinbase Seeks Key Regulatory Insights

The first FOIA request is aimed at obtaining documents related to the cap on digital asset deposits enforced by the Federal Deposit Insurance Corporation (FDIC) and other banking regulators on financial institutions.

The second request seeks to collect logs detailing how these agencies handle other FOIA requests. These latest requests differ from previous FOIA filings made over a year ago, which are currently involved in federal lawsuits.

Grewal’s recent statement detailed the breadth of the new requests, targeting all documents and communications exchanged between officials from various regulatory entities, including the Treasury’s Office of the Comptroller of the Currency, the FDIC, and the Federal Reserve Board.

These documents should concern any imposition of caps or restrictions on deposits from digital-asset companies at banking institutions such as Signature Bank and Silvergate Bank, dating back to June 1, 2022.

The broad scope of “documents” in the request encompasses a variety of materials, including contracts, emails, meeting minutes, and any relevant communications, aimed at uncovering a full picture of how regulators approach digital asset deposit limitations.

Understanding the Application of Securities Laws

The dispute between the exchange and US regulators also traces back to an earlier FOIA request submitted by History Associates on behalf of Coinbase, which the Securities and Exchange Commission (SEC) rejected, citing FOIA Exemption applicable to records gathered for ongoing law enforcement proceedings.

In addition to the FOIA requests, Coinbase has recently filed a motion in court to force the SEC to release internal records that could clarify how securities laws apply to digital assets.

This encompasses documents related to Ethereum’s shift to a proof-of-stake consensus mechanism and investigatory files concerning Enigma MPC and Zachary Coburn—both of which have previously settled claims with the SEC.

In spite of these attempts, Coinbase has expressed disappointment with the SEC’s limited response, which consisted of only three heavily redacted pages, with the agency contending that additional records are being withheld under the same exemption.

History Associates, representing Coinbase in the FOIA issue, argues that under FOIA, agencies are obliged to disclose responsive records unless they can convincingly demonstrate that they fall under specific statutory exemptions, to which the regulator’s reply was a request for an extension of time.