In a significant development, the U.S. Department of Justice’s Asset Forfeiture Division, the U.S. Marshals Service, has selected Coinbase as a custodial provider for large-cap digital assets.
Coinbase recently announced the partnership. Blog posthighlighting the agency’s selection of Coinbase Prime to provide advanced custody and trading services for its centrally managed “Class 1” digital assets in support of federal law enforcement efforts.
Coinbase Secures Government Partnership
The US Marshals Service conducted a comprehensive due diligence process, considering various solutions, and ultimately selected Coinbase based on its proven track record and ability to provide institutional-grade services securely. Encryption Services Widely.
an agency advertiser It requires reliable storage and liquidation technologies to professionally manage and dispose of large amounts of common cryptocurrency assets, known as Class 1 cryptocurrencies, in a manner consistent with policies set forth by the Department of Justice and the U.S. Marshals Service.
The partnership will reportedly streamline the custody, management, and disposal of crypto assets, allowing for a diversification of the types of digital assets that can be handled and disposed of under government forfeiture programs.
Coinbase emphasized its long history of supporting law enforcement agencies and its cooperation with major federal, state, and local agencies in the United States, as well as International agencies All over the world. The stock exchange wrote:
Today, Coinbase partners with every major federal, state, and local law enforcement agency in the United States, as well as international agencies on every continent. Growing the cryptocurrency economy means fostering safe and efficient markets, and these partnerships are essential to our mission.
Has the organizational contradiction been revealed?
While Coinbase’s selection by the US Marshals Service demonstrates its ability to serve government entities, the exchange has faced regulatory scrutiny from agencies like the US Securities and Exchange Commission (SEC).
However, the US government has recently Transfer Over 3,940 BTC worth $241 million to Coinbase, originally seized from drug dealer Panmeet Singh during a trial in January 2024.
John E. Deaton, Pro-Cryptocurrency Lawyer Criticize Dayton criticized the U.S. government’s actions, calling them “unreasonable.” He specifically criticized SEC Chairman Gary Gensler and U.S. Senator Elizabeth Warren, noting that Gensler continues to serve under Warren while allegedly joining the anti-crypto movement she pledged to create when she announced her re-election.
Deaton highlighted the irony of the US government’s use of Coinbase. Bitcoin Transfers While the exchange itself is facing accusations of illegal trading activities by the Securities and Exchange Commission and its chairman, Gary Gensler.
Deaton pointed out the contradiction of Gensler, as SEC chairman, declaring Coinbase’s business illegal, while the US government relies on the same “illegal” business to sell Bitcoin to the American public.
Ultimately, the situation raises questions about the consistency and coherence of the government’s approach to Cryptocurrenciesespecially regarding Coinbase’s involvement in fiat transactions despite ongoing regulatory challenges.
This incident underscores the need for clarity and coordination between regulators and government agencies to create a more predictable and supportive environment for the crypto industry.
Featured image by DALL-E, chart by TradingView.com