Coinbase has filed two Freedom of Information Act (FOIA) requests against U.S. regulators, seeking transparency on a reported crackdown on crypto companies by American banks. According to Paul Grewal, Coinbase’s chief legal officer, the FOIA requests aim to uncover documents related to restrictions on crypto-related deposits at banks, including a supposed 15% deposit cap imposed by the Federal Deposit Insurance Corporation (FDIC) without public consultation.
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In an Oct. 21 post on the X platform, Grewal explained that Coinbase filed the FOIA requests to gain clarity on how regulators are handling digital assets. The first request focuses on the FDIC’s actions, while the second seeks information about regulators’ responses to past crypto-related FOIA inquiries.
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The FDIC’s deposit caps, allegedly enforced without seeking public input, have sparked concerns as U.S. law generally requires banking regulators to do so before implementing such measures. These new FOIAs are separate from earlier ones that are now part of Coinbase’s federal lawsuits against the FDIC and the U.S. Securities and Exchange Commission (SEC). Coinbase had previously sued the SEC and FDIC for not complying with disclosure requests, including documents about how the SEC classifies Ether (ETH).
In 2023, the SEC charged Coinbase with violating securities laws related to its ETH staking service, despite regulators categorizing spot ETH as a commodity while the status of staking pools remains unclear. Additionally, Coinbase has sought information on “pause letters” reportedly sent by the FDIC, urging banks to slow down their crypto-related activities.
Coinbase is actively promoting the establishment of transparent regulations for digital assets through its “Stand with Crypto” initiative, which introduced a political action committee (PAC) in March aimed at backing candidates who support cryptocurrency. As the U.S. presidential election approaches, the discourse surrounding crypto regulation has intensified. Republican candidate Donald Trump has advocated for positioning America as the “crypto capital of the world,” while Democratic Vice President Kamala Harris has taken a more cautious stance on the matter, although she is perceived as more favorable towards cryptocurrency than President Joe Biden.
The “Stand with Crypto” initiative by Coinbase underscores the company’s commitment to fostering a regulatory environment that is conducive to the growth of digital assets. The establishment of a political action committee (PAC) in March reflects its strategic approach to support candidates who align with pro-crypto policies. With the presidential election on the horizon, the conversation around cryptocurrency regulation has gained prominence, particularly with Trump’s vision of transforming the United States into a leading hub for crypto innovation.
As the political landscape evolves in the lead-up to the U.S. presidential election, Coinbase’s efforts to advocate for clear digital asset regulations are becoming increasingly significant. The company’s “Stand with Crypto” initiative, which includes a PAC launched in March, aims to endorse candidates who are favorable to the cryptocurrency sector. While Trump champions the idea of making America the “crypto capital of the world,” Harris’s more measured approach suggests a nuanced perspective, positioning her as relatively more supportive of cryptocurrency compared to President Biden.
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