• The US Marshals Service has selected Coinbase Prime to oversee its large-cap crypto assets via a $32.5 million contract.
  • Still, Coinbase is dealing with SEC legal challenges over platform registration.

The US Marshals Service (USMS) has taken a significant step by partnering with Coinbase Prime to oversee its large-cap digital assets. The USMS, responsible for asset forfeiture under the Department of Justice, will support Coinbase’s custody and advanced trading services through a $32.5 million contract. This collaboration highlights the growing integration of cryptocurrency management within federal agencies.

Coinbase was selected after an attentive selection process due to its proven security measures and ability to handle large-scale institutional crypto services. This partnership aims to ensure the secure management of digital assets central to federal law enforcement operations.

However, this joint effort comes when Coinbase is embroiled in legal battles with the U.S. Securities and Exchange Commission (SEC). The SEC has accused Coinbase of operating its platform without proper registration, a case that is still pending in court. In retaliation, Coinbase has recently filed lawsuits against several federal agencies. That includes the SEC, alleging attempts to stifle the crypto industry by cutting off its access to banking services.

Regulatory Actions Expand Beyond Coinbase

The SEC has also charged Consensys Software with offering unregistered securities through MetaMask Staking and functioning as an unregistered broker. 

Additionally, Silvergate Bank’s parent company has settled charges related to anti-money laundering failures and misleading disclosures with the SEC, the Federal Reserve, and the California Department of Financial Protection and Innovation.

This development highlights the complex and often contentious relationship between the burgeoning crypto industry and federal regulatory bodies.