Coinbase Sues FDIC Over Delayed Crypto Debanking Documents
1min read Coinbase has taken legal action against the Federal Deposit Insurance Corporation (FDIC) for attempting to delay the release of crucial documents related to the alleged debanking of crypto firms. On April 10, the exchange opposed the FDIC’s request for a 16-day extension in response to a Freedom of Information Act (FOIA) lawsuit. Paul Grewal, Coinbase’s Chief Legal Officer, described the request as “absurd,” noting that the FDIC submitted 13 pages to ask for more time to decide whether it needs even further delays.
In its court filing, coinbase accused the FDIC of stalling and failing to meet its obligations under FOIA. The exchange argued that the agency’s redacted documents were so heavily censored that they offered no meaningful insight. Coinbase also challenged the FDIC’s claim that the new response deadline is May 2, stating that the actual due date should be April 16. According to Coinbase, the FDIC has had ample time to respond and is now attempting to sidestep its legal responsibilities by misinterpreting FOIA deadlines.
This legal battle is part of Coinbase’s broader efforts to expose the government’s role in crypto debanking. Earlier this year, court-ordered disclosures revealed hundreds of pages of internal FDIC documents showing that the agency had pressured US banks to cut ties with digital asset firms. Some banks were told to halt services to crypto businesses until they received regulatory clearance, while others were warned about reputational risks associated with engaging with the sector.
However, Coinbase believes these disclosures only scratch the surface and the company is extensively pushing for more transparency to understand the full extent of the FDIC’s role in crypto debanking. Meanwhile, the FDIC has recently taken steps to align more closely with the crypto industry, revoking several anti-crypto regulations and working toward a more transparent framework for US banks engaging with digital assets.
