Coinbase Sues FDIC Over Withheld Crypto Regulatory Docs

Coinbase has taken legal action against the Federal Deposit Insurance Corporation (FDIC), accusing the agency of deliberately withholding information related to its alleged involvement in "Operation Chokepoint 2.0," a regulatory effort purportedly pressuring banks to cut ties with cryptocurrency firms. In a recent filing, the exchange challenged the FDIC’s refusal to comply with court-ordered disclosures under the Freedom of Information Act (FOIA). Coinbase’s legal team highlighted what it described as a pattern of obstruction, including a failure to conduct a proper document-by-document review and an overuse of exemptions to withhold information [1].

Central to the case are "pause letters" the FDIC allegedly sent to banks, urging them to halt services for crypto companies. These letters, if proven to exist, are seen by crypto advocates as a continuation of tactics similar to the original Operation Chokepoint, which occurred under the Obama administration. Coinbase’s Chief Legal Officer, Paul Grewal, publicly stated that FDIC staff continue to "stonewall our efforts to shed light" on these past actions and emphasized the need for full transparency to prevent similar incidents from recurring [1].

According to court documents, the FDIC failed to properly respond to Coinbase’s FOIA request, applying broad exemptions and refusing to segregate factual information from internal deliberations. This lack of diligence, Coinbase argues, has prevented the public from understanding the full scope of regulatory influence over the crypto industry. The exchange is now seeking to compel FDIC officials to provide sworn testimony and to release all FOIA denial letters issued between 2020 and 2024 concerning similar records [1].

Further complications arose when the FDIC initially limited its document search to those shared with its Office of Inspector General (OIG), despite broader references to "pause letters" in the OIG’s report. This narrowed approach, Coinbase claims, caused the FDIC to miss key documents relevant to the case. In a January court hearing, the FDIC admitted it lacked a formal litigation hold process for FOIA requests, raising further concerns about the agency’s transparency [1].

The dispute reflects a broader debate about the influence of U.S. regulators over the crypto industry. While the FDIC has been central to shaping banking policies, critics argue that its opaque handling of documents undermines public trust and stifles innovation. As Coinbase continues to expand its influence—both in the U.S. and across Europe—its legal battle with the FDIC has taken on added significance. TIME recently named Coinbase one of 2025’s 100 Most Influential Companies, noting its role as a “disruptor” in digital asset markets and a key player in shaping U.S. crypto policy [1].

Sources: [1] Coinbase Accuses FDIC of Hiding Operation Chokepoint 2.0 Files (https://cryptonews.com/news/coinbase-accuses-fdic-of-hiding-operation-chokepoint-2-0-files/)