$2.35B
has accused the Federal Deposit Insurance Corporation (FDIC) of continuing to hold back important records, despite being told by the court to release them.
The dispute centers on documents known as “pause letters”, which the FDIC reportedly sent to banks asking them to stop offering services tied to cryptocurrency.
In a court filing on July 29, Coinbase asked a federal judge to reject the FDIC’s request to dismiss its lawsuit under the Freedom of Information Act (FOIA). The crypto exchange said these records could show that regulators discouraged banks from working with crypto companies in a coordinated effort, often referred to as “Operation Chokepoint 2.0”.
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Paul Grewal, Coinbase’s Chief Legal Officer, stated in a series of posts on X on July 31 that the FDIC has been making it difficult to get access to the full set of documents and that the company plans to keep pushing until more information is released.
According to the court filing, it took four separate court orders and six partial releases before the FDIC finally admitted to having all of the requested records. Coinbase also said the agency used a broad interpretation of FOIA rules to avoid reviewing the documents one by one.
Instead, the FDIC treated all the records as exempt under a rule meant to protect bank examination materials, even though the law usually requires a case-by-case review.
Coinbase wants agency officials to explain how the document review was handled. In addition, it is requesting copies of all denial letters the FDIC sent to other FOIA requesters between 2020 and 2024, in cases where bank-related documents were withheld.
Recently, Coinbase released a satirical video titled Everything Is Fine. What is the video about? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
