Coinbase Challenges FDIC’s Attempt to Delay Release of Documents
Coinbase, one of the leading cryptocurrency exchanges, has taken legal action against the Federal Deposit Insurance Corporation (FDIC) in response to a request to delay the release of key documents related to the debanking of crypto firms. The exchange filed a legal objection to the FDIC’s latest attempt to postpone the disclosure of crucial information.
On April 10, Coinbase opposed the FDIC’s request for a 16-day extension in a Freedom of Information Act (FOIA) lawsuit. Paul Grewal, the company’s Chief Legal Officer, criticized the FDIC’s request as “absurd,” pointing out that the agency submitted 13 pages just to ask for more time to make a decision on potential further delays.
In its court filing, Coinbase accused the FDIC of stalling and failing to fulfill its obligations under FOIA. The exchange argued that the redacted documents provided by the agency lacked meaningful insight due to heavy censorship. Coinbase also challenged the FDIC’s claim that the new response deadline was May 2, asserting that the actual due date should be April 16. The exchange claimed that the FDIC had ample time to respond and was now trying to evade its legal responsibilities by misinterpreting FOIA deadlines.
This legal battle is part of Coinbase’s broader efforts to expose the government’s involvement in the debanking of crypto businesses. Earlier this year, court-ordered disclosures revealed internal FDIC documents showing that the agency had pressured US banks to sever ties with digital asset firms. Some banks were instructed to cease services to crypto businesses until receiving regulatory clearance, while others were cautioned about the reputational risks associated with the sector.
Despite the disclosures, Coinbase believes there is more to uncover regarding the FDIC’s role in crypto debanking and is actively seeking greater transparency. Meanwhile, the FDIC has shown signs of aligning more closely with the crypto industry by revoking anti-crypto regulations and working towards a more transparent framework for US banks engaging with digital assets.
As Coinbase continues its legal battle with the FDIC, the exchange remains committed to shedding light on the government’s actions in the debanking of crypto firms. The pursuit of transparency and accountability in the crypto industry is essential for fostering trust and ensuring fair treatment for all stakeholders involved.