Coinbase sues FDIC over withheld documents despite agency's transparency promises. The exchange secured a case dismissal in South Carolina, while eight states continue legal proceedings.
FDIC's Lack of Cooperation Spurs Legal Action
According to Eleanor Terrett, Coinbase is urging the D.C. District Court to lift the litigation stay in its FOIA lawsuit against the FDIC. The exchange asserts that the agency continues to withhold crucial documents, hindering transparency efforts. Judge Reyes previously paused proceedings in February following the appointment of FDIC Acting Chairman Travis Hill, who had pledged to enhance transparency. However, Coinbase now contends that the FDIC has halted information-sharing efforts, prompting the renewed legal push.
Coinbase's Recent Legal Victories
Besides the FOIA lawsuit, Coinbase recently secured a legal victory as South Carolina dismissed its case against the exchange’s staking services. South Carolina joins Vermont in dropping allegations that Coinbase offered unregistered securities.
Widespread Legal Challenges Against Coinbase
South Carolina and Vermont were among ten states that sued Coinbase on June 6, 2023, targeting its staking services. The Securities and Exchange Commission (SEC) had also filed a lawsuit against the exchange the same day. However, the SEC officially dismissed its case on February 27, 2025. Enforcement actions against Coinbase are also pending in eight additional states. The rulings in those cases may set important precedents for U.S. crypto regulations. Additionally, Coinbase's strong legal position shows their dedication to opposing unnecessary regulatory actions.
Coinbase continues its fight for transparency despite FDIC's reluctance to provide documentation and legal challenges in multiple states. These efforts could shape the future of U.S. crypto regulation.
