The U.S. Immigration and Customs Enforcement has purchased computer forensics software from Coinbase, according to a notice published in early August.
The United States Immigration and Customs Enforcement announced in early August 2021 that it would use monitoring software from Coinbase. The document didn’t say much with respect to how this computer forensics software would be used.
This makes the government border security agency yet another government department to use analysis software developed by or for the crypto market. The IRS is also working with companies for the purposes of recording taxes.
The total cost was stated to be $29,000 with an estimated performance period of one year. The notice states that Coinbase is “the only vendor” who can reasonably provide the services required by the agency,
“The Department of Homeland Security (DHS), U.S. Immigration and Customs Enforcement (ICE), Office of Acquisition Management (OAQ), intends to award a purchase order on a basis of other than full and open competition for computer forensic services. In accordance with FAR 13.106-1(b)(1)(i) and (ii), Coinbase, Inc. (DUNS number 081007539) is the only vendor who can reasonably provide the services required by the agency.”
Coinbase has been making an attempt to work with government agencies in the past, specifically for analysis and monitoring. Besides the immigration and customs agency, it has also been awarded a contract by the Secret Service. The exchange has a strong emphasis on compliance and working with the government, which appears to be paying off.
US not entirely resistant to crypto, wants to enforce compliance
The United States is going full steam ahead with its plan to regulate the crypto market. It was once seen as lagging behind in this regard, but recent developments have changed the narrative.
The infrastructure bill has been a major talking point in recent weeks, with its provision for taxing crypto, but a lot else has been going on. On a high level, agencies are working on providing definitions for entities in the space, investor protection measures, taxation, and stablecoin regulation.
Each of these appears to be moving forward to some degree. Besides the slight backlash over the crypto part of the infrastructure bill’s legislation, there hasn’t been too much resistance from those in the market. If anything, investors, and market participants will be happy because of the increased regulatory clarity.
Still, it’s hard to say how exactly the future of crypto in the United States will be. Treasury Secretary Janet Yellen, while softening her position a little bit, is still keen on regulating the market strongly. Stablecoins seem to be a priority target for government agencies, as the U.S. begins reviewing the development of a central bank digital currency (CBDC).