crypto.news 2025-03-31 18:38:38

Coinbase files to revive lawsuit against FDIC over crypto transparency

Coinbase has filed a motion in the D.C. District Court to resume its Freedom of Information Act lawsuit against the Federal Deposit Insurance Corporation. The exchange alleges that the FDIC continues to withhold crucial documents and is not fully cooperating with its information requests. This legal action seeks to obtain records related to the FDIC’s communications with banks regarding cryptocurrency activities, particularly concerning the so-called “pause letters” that instructed banks to halt crypto-related services. The lawsuit was initially paused in February 2025 following President Trump’s appointment of Travis Hill as acting FDIC chairman. Hill pledged to enhance the agency’s transparency beyond FOIA requirements, raising hopes that the matter could be resolved outside of court. Coinbase’s Chief Legal Officer, Paul Grewal, told Eleanor Terrett that there is ongoing dissatisfaction with the FDIC’s transparency. He acknowledged that cooperation has improved under the new leadership but feels it is still not sufficient. The FDIC is expected to respond to Coinbase’s motion within two weeks. You might also like: GameStop dives into Bitcoin, but investors aren’t buying it…yet FDIC and banking The FDIC recently announced that banks are no longer required to obtain prior approval to engage in legally permitted cryptocurrency activities, provided they effectively manage associated risks. This policy reversal marks a significant shift from the previous administration’s more cautious stance on crypto-related banking services. Coinbase’s legal actions are part of a broader effort to uncover evidence of “Operation Chokepoint 2.0,” an alleged coordinated attempt by financial regulators to restrict the crypto industry’s access to banking services. Documents obtained through previous FOIA requests suggest that the FDIC issued letters to banks, advising them to pause crypto-related activities, which Coinbase views as part of a concerted effort to stifle cryptocurrency innovation. You might also like: Coinbase CEO calls for US to allow interest on stablecoins