Freedom

Joe Biden

Coinbase has submitted two Freedom of Information Act (FOIA) requests against American regulators. 
The crypto exchange is demanding the disclosure of documents related to the prosecution of crypto companies by U.S. banks. This was <a href="https://x.com/iampaulgrewal/status/1848396461618483585" target="_blank" rel="nofollow">reported</a> by Coinbase CLO Paul Grewal. 
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"> 
 “We filed two new sets of FOIA requests in our continued effort to get any sort of clarity on how regulatory agencies are approaching digital assets. In short, so long as the government will not relent, neither will Coinbase.” 
</blockquote> 
The Federal Deposit Insurance Corporation (<a href="https://crypto.news/tag/fdic/" target="_blank">FDIC</a>) has recommended banks limit deposits from crypto firms to 15% of total deposits. <a href="https://crypto.news/tag/coinbase/" target="_blank">Coinbase</a> has also filed another FOIA request to determine how regulators have responded to similar requests. 
The FDIC reportedly set these limits without seeking public input in advance, contrary to the usual practice for banking regulators in the U.S. Grewal noted that the new FOIA requests are unrelated to previous requests filed more than a year ago, which are currently in federal litigation. 
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"> 
 “Each is separate from our FOIA filings from over a year ago that are now the subject of federal lawsuits.” 
</blockquote> 
FOIA in the U.S. gives the right to request access to records and information held by federal agencies. This includes government records related to financial transactions and cryptocurrency regulation. 
<h2 class="wp-block-heading" id="what-is-known-about-the-coinbase-lawsuit-string">What is known about the Coinbase lawsuit string</h2> 
Coinbase has been pushing the U.S. Securities and Exchange Commission (<a href="https://crypto.news/tag/sec/" target="_blank">SEC</a>) to develop explicit rules for the industry for the past few years. In July 2022, the company filed a petition to the Commission to this effect, and in April 2023, it went to court. 
The SEC’s head, <a href="https://crypto.news/tag/gary-gensler/" target="_blank">Gary Gensler</a>, rejected Coinbase’s claims, saying that existing laws apply to the industry. In March, the platform asked the appellate court to compel the regulator to develop rules. 
In June 2023, the SEC <a href="https://www.sec.gov/newsroom/press-releases/2023-102" target="_blank" rel="nofollow">brought</a> charges against Coinbase, alleging that the company violated securities laws through its staking Ethereum (<a href="https://crypto.news/price/ethereum/" target="_blank">ETH</a>) offering. Coinbase then requested documents from the regulator regarding the classification of ETH to determine whether the agency considers it a security or a commodity. 
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"> 
 “We allege that Coinbase, despite being subject to the securities laws, commingled and unlawfully offered exchange, broker-dealer, and clearinghouse functions.” <cite>Gary Gensler, SEC Chair</cite>
</blockquote> 
Following this issue, Coinbase also <a href="https://crypto.news/coinbase-sues-sec-and-fdic-over-freedom-of-information-requests/" target="_blank">filed</a> a lawsuit against the SEC and the FDIC for refusing to clarify the situation with the regulation of the cryptocurrency sector. 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper"> 
 <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 Financial regulators have used multiple tools at their disposal to try to cripple the digital-asset industry. <a href="https://twitter.com/SECGov?ref_src=twsrc%5Etfw" target="_blank" rel="nofollow">@SECGov</a> has claimed sweeping authority, but refuses to provide any rules, let alone consistent or coherent ones. While <a href="https://twitter.com/FDICgov?ref_src=twsrc%5Etfw" target="_blank" rel="nofollow">@FDICgov</a> pressured financial institutions to cut…— paulgrewal.eth (@iampaulgrewal) <a href="https://twitter.com/iampaulgrewal/status/1806299309836746909?ref_src=twsrc%5Etfw" target="_blank" rel="nofollow">June 27, 2024</a>
 </blockquote>
 <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
 </div>
</figure> 
 You might also like: <a rel="" href="https://crypto.news/coinbase-refines-subpoena-to-focus-on-genslers-period-as-sec-chair/"> Coinbase refines subpoena to focus on Gensler’s period as SEC chair </a> 
The company filed a FOIA request with the authorities. Specifically, the exchange was interested in materials on the <a href="https://crypto.news/tag/ethereum/" target="_blank">Ethereum</a> 2.0 investigation and two already closed SEC cases: Enigma MPC and Ether Delta. 
However, Coinbase was unsuccessful, prompting it to seek a court order to overturn the SEC’s decision. The form argued that the regulator lacks clear guidance, making it difficult to comply with existing laws in the U.S. 
Eugene Scalia, a lawyer for Coinbase, worried that the SEC’s lack of clarity in its conduct left the exchange “without a clear path to compliance”. 
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"> 
 “I leave this court understanding the SEC’s views on this topic even less than when I entered.”&nbsp; <cite>Eugene Scalia, Coinbase’s lawyer</cite>
</blockquote> 
The judging panel acknowledged that the SEC could prioritize its rulemaking but questioned why crypto regulation had not received the attention it deserves. The case is part of a broader tension between the SEC and the crypto industry, where the regulator insists on classifying most crypto tokens as securities that fall under its oversight. 
Coinbase and other crypto companies are challenging this position, arguing that the sector is in a legal gray area and calling for new legislation to regulate digital currencies. 
<h2 class="wp-block-heading" id="crypto-s-growing-influence-in-the-u-s">Crypto’s growing influence in the U.S.</h2> 
As part of its push for better crypto regulation, Coinbase <a href="https://crypto.news/stand-with-crypto-pac-launches-to-back-pro-crypto-politicians/" target="_blank">has launched</a> a new initiative, Stand With Crypto, which includes a political action committee (PAC). 
The upcoming U.S. elections in November will see a battle between Republican <a href="https://crypto.news/tag/donald-trump/" target="_blank">Donald Trump</a>, who wants to make crypto great again, and Democrat Kamala Harris, whose views on cryptocurrency are more favorable than those of current President <a href="https://crypto.news/tag/joe-biden/" target="_blank">Joe Biden</a> but still less progressive than Trump’s. Many crypto supporters believe this election could be a defining moment for the industry, and they are ready to financially support their candidates. 
<figure class="wp-block-image size-full">
 <img loading="lazy" decoding="async" width="1642" height="1264" src="https://crypto.news/app/uploads/2024/10/Screenshot-2024-10-22-at-16.30.18.png" alt="Game on: Coinbase files two new FOIA requests against crypto regulators - 22" class="wp-image-14305249">
 <figcaption class="wp-element-caption">
 U.S. election forecast. Source: <a href="https://polymarket.com/elections" target="_blank" rel="nofollow">Polymarket</a>
 </figcaption>
</figure> 
According to <a href="https://www.cnbc.com/2024/10/20/crypto-pac-fairshake-targets-close-house-races-as-election-nears-end.html" target="_blank" rel="nofollow">CNBC</a>, crypto firms have provided almost half of all corporate contributions in this election cycle. The volume of crypto donations for the U.S. presidential election has reached nearly $200 million. 
Crypto analyst James Delmore emphasized that California remains the center of the crypto industry thanks to its many <a href="https://crypto.news/tag/blockchain/" target="_blank">blockchain</a> companies, and the political situation in the state will be necessary for the further development of legislation in this area. 
 You might also like: <a rel="" href="https://crypto.news/the-real-winner-of-the-2024-us-elections-will-be-crypto-opinion/"> The real winner of the 2024 US elections will be crypto | Opinion </a>

Game on: Coinbase files two new FOIA requests against crypto regulators

Table of Contents

crypto.news

Other articles published on Oct 22, 2024

Experts Say Mpeppe’s Utility Will Quickly Surpass Dogwifhat Hype

Musk's "Buy Bitcoin" Tweet Turns 6

6 Best Cryptos to Invest Right Now for Massive Gains in 2024

Bitcoin On The Brink Of Collapse: Speculation Is Exploding!

LayerZero CEO Bryan Pellegrino Warns of Vulnerable Protocol! Here Are the Details

Altcoin Season Delayed: Bitcoin’s Dominance Holding Back the Market!

Join our free newsletter for daily crypto updates!