Leading cryptocurrency exchange,
$2.43B
, alleges that the Federal Deposit Insurance Corporation (FDIC) is continuing to withhold key documentation, despite a court mandate for their release.
The core of the disagreement revolves around “pause letters.” These letters were purportedly distributed by the FDIC to banking institutions, urging them to cease offering services related to cryptocurrencies.
In a legal submission dated July 29, Coinbase formally requested a federal judge to deny the FDIC’s plea to dismiss its legal action under the Freedom of Information Act (FOIA). The exchange contends that these records could potentially demonstrate a coordinated regulatory effort to dissuade banks from engaging with crypto firms. This initiative has been informally dubbed “Operation Chokepoint 2.0”.
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Paul Grewal, Chief Legal Officer at Coinbase, conveyed on X through a series of posts on July 31st that accessing the complete document set from the FDIC has been a challenge. He affirmed that the company intends to continue its efforts to secure the release of further information.
The court filing details that it took four court orders and six partial releases for the FDIC to finally acknowledge possession of all the requested records. Coinbase further stated that the agency employed a broad interpretation of FOIA regulations to circumvent individual document review.
The FDIC reportedly treated all documents as exempt under a clause meant to protect banking examination materials, despite the typical legal requirement for a case-by-case assessment.
Coinbase is seeking an explanation from agency officials regarding how the document review process was conducted. Moreover, they are requesting copies of all denial letters issued by the FDIC to other FOIA requesters between 2020 and 2024, specifically those instances where bank-related documents were withheld.
Coinbase recently launched a satirical video called Everything Is Fine. Want to learn more about the video? 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.
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