Coinbase is accusing the Federal Deposit Insurance coverage Company (FDIC) of stonewalling court docket orders and obstructing efforts to reveal paperwork tied to the alleged “Operation Chokepoint 2.0,” in line with new filings in federal court docket.
Key Takeaways:
- Coinbase claims the FDIC is obstructing court-ordered disclosures tied to crypto regulation.
- At concern are alleged “pause letters” pressuring banks to chop ties with crypto companies.
- Coinbase is pushing for testimony and full launch of withheld FOIA paperwork.
The crypto trade submitted an opposition temporary and movement for additional discovery on Tuesday, difficult the FDIC’s try and dismiss Coinbase’s Freedom of Data Act (FOIA) lawsuit.
On the heart of the case are “pause letters” the FDIC allegedly despatched to banks, urging them to halt companies associated to cryptocurrency corporations.
Coinbase Authorized Chief: FDIC Nonetheless Stonewalling Crypto Docs
Coinbase’s Chief Authorized Officer, Paul Grewal, made the authorized transfer public on X (previously Twitter), stating that the FDIC employees “proceed to stonewall our efforts to shed gentle” on previous efforts that, he claims, intentionally focused the crypto trade.
“We are able to’t and gained’t stand for it,” he wrote.
The dispute stems from considerations amongst crypto advocates that U.S. regulators used unofficial stress ways, mirroring the unique Obama-era Operation Chokepoint, to push banks away from the crypto sector.
Grewal stated these actions should be totally revealed to make sure “they by no means occur once more.”
Court docket paperwork present the FDIC didn’t conduct a document-by-document evaluation of the requested supplies and as an alternative utilized broad exemptions to withhold info.
The trade can’t afford to be complacent. Historic progress on the federal stage is plain, however it’s crucial that we uncover historic misdeeds in order that THEY NEVER HAPPEN AGAIN. 3/6
— paulgrewal.eth (@iampaulgrewal) July 31, 2025
It took 4 court docket orders and 6 separate doc productions for the regulator to supply the related data, Coinbase’s authorized group stated.
Inner FDIC insurance policies uncovered throughout the litigation present the company instructs employees to totally withhold paperwork falling underneath FOIA Exemption 8, which protects confidential financial institution examination data.
The coverage reportedly states there may be “no obligation to segregate factual from analytical or deliberative materials.”
Coinbase is now asking the court docket to compel sworn testimony from FDIC officers about how they dealt with the paperwork and to show over all FOIA denial letters issued between 2020 and 2024 involving related data.
FDIC Narrowed Search, Missed Key Crypto Docs: Submitting
The submitting additionally highlights how the FDIC initially restricted its search to paperwork shared with its Workplace of Inspector Normal (OIG), regardless of a broader reference to “pause letters” within the OIG’s report. This led to a number of responsive paperwork being missed fully.
In a January court docket listening to, the FDIC admitted it lacked a proper litigation maintain course of for FOIA requests.
Paperwork later launched in February revealed that banks all for serving crypto companies had been “virtually universally met with resistance,” in line with feedback from the FDIC’s Performing Chair.
As reported, TIME has acknowledged Coinbase as one in every of 2025’s 100 Most Influential Firms, labeling the crypto trade a “disruptor” for its vital position in shaping US digital asset insurance policies and markets.
TIME famous the trade as a key driver behind the trade’s coverage efforts and predicted Coinbase might change into the central hub for crypto buying and selling within the US.
Past the US, Coinbase is broadening its attain in Europe, securing a license underneath the EU’s MiCA regulatory framework by Luxembourg’s monetary regulator.
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