Coinbase submits an amicus brief urging the court to protect customer assets in the Prime Trust bankruptcy case.

Coinbase has submitted an amicus brief regarding the ongoing bankruptcy case of Prime Trust, urging the court to support legal protection for customer assets held by the custodian. Coinbase's Chief Legal Officer, Paul Grewal, announced the document, emphasizing that customer assets should not be included in the custodian's bankruptcy proceedings. The company advocates for the enforcement of Article 8 of the Uniform Commercial Code (UCC), which ensures that assets held by the custodian belong to the customers, not to the custodian itself. Coinbase argues that both its user agreement and Prime Trust's user agreement clearly stipulate that the assets remain the property of the customers. Bankruptcy should not alter these agreements or reclassify the assets as part of the custodian's property. The legal document will prevent customer funds from being included in Prime Trust's bankruptcy estate. Coinbase maintains that upholding UCC Article 8 is crucial for preserving trust in custodians, whether in the digital finance or traditional finance sectors. In other legal developments, the Operation Chokepoint 2.0 hearings have garnered attention across the industry. Paul Grewal will testify alongside other key figures to rebut unfair banking restrictions on cryptocurrencies.