Coinbase has filed a lawsuit against the Federal Deposit Insurance Corporation (FDIC) under the Freedom of Information Act (FOIA). The firm seeks access to documents related to cryptocurrency oversight.
Conflict Over 'Pause Letters'
At the heart of the dispute are so-called 'pause letters' sent by the FDIC to banking institutions instructing them to halt cryptocurrency services. Coinbase, through its FOIA agent History Associates, argues these letters and related policy documents should be public information.
Court Already Rejected Blanket Withholding
This is not the first legal clash in the case. A prior court order had already rejected the FDIC’s blanket refusal to release the documents, instructing the agency to produce redacted versions instead. However, newly released internal instructions suggest the FDIC may have had a standing policy to withhold such documents without adequate review.
Coinbase Seeks Court Intervention
In addition to requesting the release of the withheld records, Coinbase is urging the court to declare the FDIC’s approach unlawful under FOIA. The crypto firm warns that without judicial intervention, similar requests could face the same fate, leaving the public in the dark about how federal regulators are shaping the future of crypto banking.
This case could have far-reaching implications. If Coinbase prevails, it may uncover evidence of a coordinated effort by U.S. regulators to marginalize crypto firms by pressuring banks behind closed doors.
