U.S. Marshals Service Awards $32.5 Million Crypto Custody Contract to Coinbase

BySamson Ononeme

Jul 1, 2024 ,
U.S. Marshals Service awards $32.5M contract to Coinbase Prime for crypto custody and trading services, amid ongoing regulatory challenges for the exchange.

Key Insights

  • The U.S. Marshals Service has awarded a $32.5 million contract to Coinbase Prime for cryptocurrency custody and trading services.
  • This government endorsement comes as Coinbase faces ongoing legal challenges from the SEC and has recently filed lawsuits against federal regulators.
  • The contract highlights the complex regulatory landscape in the crypto industry, with different government agencies taking seemingly contradictory approaches.

WASHINGTON (MarketsXplora) – The U.S. Marshals Service (USMS) has awarded a $32.5 million contract to Coinbase Prime for cryptocurrency custody and advanced trading services, the company announced on Monday.

The federal law enforcement agency, responsible for managing seized assets, selected Coinbase Prime after a competitive due diligence process to handle large-cap digital assets.

The contract aims to streamline the custody, management, and disposal processes for cryptocurrency assets seized in federal law enforcement operations. It will allow the agency to diversify the types of digital assets it can handle under government forfeiture programs.

“This agreement requires the use of multiple, industry-leading storage and liquidation techniques employed in a professional, lawful manner consistent with Department and USMS policy,” the agency stated in a previous document outlining the contract requirements.

Read also! U.S. Government Moves $241 Million in Seized Bitcoin to Coinbase

The deal comes at a time when Coinbase faces ongoing legal challenges with U.S. regulators. The Securities and Exchange Commission (SEC) sued the cryptocurrency exchange last year for allegedly operating without proper registration, a case that is still making its way through the courts.

In a separate development last week, Coinbase filed lawsuits against federal agencies, including the SEC, accusing them of attempting to isolate the crypto industry from the traditional banking sector.

Despite these regulatory hurdles, the USMS contract represents a significant vote of confidence in Coinbase’s institutional services from a major government agency.

Industry analysts suggest this partnership could pave the way for increased adoption of cryptocurrency services within federal agencies, potentially influencing future regulatory discussions.

Samson Ononeme

Meet Samson Ononeme, a dynamic writer, editor, and CEO of marketsxplora.com. With a passion for words and a sharp business acumen, Samson captivates readers with captivating storytelling and delivers insightful market analysis. He is a trailblazer in the finance industry, empowering individuals with knowledge and shaping the narrative of money. Get ready to be inspired by his literary prowess and entrepreneurial leadership.

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