KEY POINTS
- The agency previously outlined its requirements for a custody and management partner
- Coinbase said the USMS ultimate chose Prime ‘due to our strong track record’
- Coinbase recently sued the SEC and FDIC for allegedly working to destroy the crypto sector
The U.S. Marshals Service (USMS) has selected cryptocurrency exchange giant Coinbase to provide custody and trading services to the large-value digital assets held by the agency, Coinbase revealed Monday.
In particular, the agency, which is under the U.S. Department of Justice (DOJ) and oversees asset forfeiture processes, selected Coinbase Prime for its “Class 1” (large cap) cryptocurrencies, which the agency manages centrally in support of federal law enforcement.
The agency said in a previous statement regarding a contract opportunity for its Class 1 digital assets that the Asset Forfeiture Division (AFD) required the management and disposal of large quantities of popular cryptocurrencies. Such activities “will require the use of multiple, industry leading, storage and liquidation techniques employed in a manner that is professional, lawful, and consistent with Department and USMS policy.”
Thus, securing the contract will ensure that the management – including custody – of Class 1 digital assets is carried out in a streamlined manner.
“The USMS conducted a competitive due diligence process that evaluated a range of solutions, ultimately choosing Coinbase due to our strong track record and ability to securely provide institutional-grade crypto services at scale,” Coinbase said in a statement Monday.
The crypto exchange titan went on to note that Coinbase has been cooperating with law enforcement since its program in relation to such activities launched in 2014. “Growing the cryptoeconomy means promoting safe and efficient markets, and these partnerships are critical to our mission,” it said.
News of Coinbase being selected for a critical task by the USMS comes as the crypto behemoth clashes with financial regulators, including the U.S. Securities and Exchange Commission (SEC), for what it said were coordinated efforts to “destroy” the crypto industry.
Just last week, the crypto company filed separate lawsuits against the Wall Street regulator and the Federal Deposit Insurance Corporation (FDIC). It accused the SEC of waging a “scorched-earth enforcement war” on crypto firms and working alongside other financial regulators to de-bank the crypto sector.
It said the FDIC sought to cut off digital assets service providers from the banking system when it ordered financial institutions to stop their crypto-related activities indefinitely.
Coinbase has also been on a mission to get politicians to pay attention to the crypto sector. It noted in a social media post after the first U.S. presidential debate that “crypto was not mentioned,” but that crypto voters can still “make sure it’s part of the conversation going forward.”
