A motion has been filed in the D.C. District Court by Coinbase, seeking to restart its Freedom of Information Act lawsuit against the Federal Deposit Insurance Corporation.
The exchange contends that the FDIC continues to withhold essential documents and is not fully complying with its information requests.
This legal action aims to acquire records concerning the FDIC’s communications with banks about cryptocurrency operations, especially related to the “pause letters” that instructed banks to cease crypto-related services.
The lawsuit was initially put on hold in February 2025 following the appointment of Travis Hill as the acting FDIC chairman by President Trump. Hill committed to improving the agency’s transparency beyond the requirements of FOIA, generating optimism that an out-of-court resolution might be possible.
Paul Grewal, Coinbase’s Chief Legal Officer, expressed to Eleanor Terrett that there remains dissatisfaction regarding the FDIC’s transparency. He acknowledged that while cooperation has seen some improvement under the new leadership, it still falls short of what is necessary.
A response from the FDIC to Coinbase’s motion is anticipated within the next two weeks.
FDIC and Banking
Recently, the FDIC informed that banks no longer need prior approval to participate in legally permitted cryptocurrency activities, provided they adequately manage the associated risks.
This change in policy represents a notable departure from the previous administration’s more cautious approach to banking services related to cryptocurrencies.
Coinbase’s legal endeavors are part of a wider initiative to uncover evidence regarding “Operation Chokepoint 2.0,” an alleged consolidated attempt by financial regulators to limit the crypto industry’s access to banking services.
Documents obtained from earlier FOIA requests indicate that the FDIC had sent letters to banks suggesting they pause crypto-related activities, which Coinbase interprets as part of a deliberate strategy to hinder innovation in the cryptocurrency sector.