Federal authority allegedly withholds "temporary halt correspondence" as claimed by Coinbase.
In a developing legal saga, cryptocurrency exchange Coinbase is locked in a dispute with the Federal Deposit Insurance Corporation (FDIC) over the withholding of "pause letters" requested by Coinbase during the discovery process. As of now, there is no specific information available about this particular dispute in search results.
However, it is known that Coinbase is supporting a lawsuit against the FDIC, titled *History Associates Incorporated v. FDIC*. This lawsuit alleges that the FDIC participated in a coordinated effort to debank cryptocurrency firms by sending "pause letters" to banks, a claim that forms part of a larger debate about debanking practices and their implications for financial access and regulation.
Coinbase's chief legal officer, Paul Grewal, has stated that the company is interested in all "pause letters" ever handled by the FDIC's Office of Inspector General. The FDIC, on the other hand, argues that the legal firm History Associates lacks "reasonable grounds" to believe additional letters outside the specified timeframe were covered by the original FOIA request.
The dispute escalated in June 2024, when Coinbase sued both the SEC and FDIC, accusing them of trying to "cut the crypto industry off" from banking. The FDIC's actions in this case have been perceived as a picture of deceit, obfuscation, and bad faith.
From March 2022 to May 2023, the FDIC sent "pause letters" urging banks to suspend certain crypto-related activities and requesting details such as cost analysis and marketing materials. The FDIC is alleged to have withheld at least 125 additional "pause letters" beyond the 25 referenced in the case.
In response, Coinbase is moving to amend their FOIA complaint to address the FDIC's alleged withholding of information. History Associates also plans to amend its lawsuit with new allegations regarding the FDIC's conduct.
Public informants have claimed that the federal agency has allegedly been "systematically thwarting FOIA requests." Coinbase is seeking fully unredacted versions of the "pause letters" for clarity on their contents.
Senator Cynthia Lummis of Wyoming has threatened the FDIC with criminal charges if it had indeed destroyed any documents related to crypto oversight. This ongoing dispute between Coinbase and the FDIC is a significant development in the regulatory landscape of the cryptocurrency industry.
In the unfolding legal battle, Coinbase's interest in the "pause letters" extends beyond the initial dispute with the FDIC, as the company is also invested in exploring the role of technology in banking practices within the business and finance sector. The FDIC's actions, including the alleged withholding of additional "pause letters" and perceived attempts to obstruct FOIA requests, are stirring discussions about transparency and accountability in technology-driven financial regulation.
