Coinbase Wins Court Order for FDIC’s Secret Crypto Docs Release

Coinbase’s FOIA request also prompted a federal judge to order the FDIC to release specific documents related to “Operation Chokepoint 2.0.” Internal “pause letters” to banks advising them to freeze some crypto activities must also be disclosed.

Coinbase Chief Legal Officer Paul Grewal applauded the court’s decision. He called it “critical to achieving transparency in regulating crypto by the government.”

Coinbase’s attempt to force U.S. regulators to clarify their view on digital assets with a FOIA request is part of a broader legal effort. Grewal noted that this ruling is important in pushing agencies that perform a significant role in the cryptocurrency world. It sets the tone for transparency in the space. Grewal said that the FDIC’s release of these documents could provide insight into how the agency deals with crypto banking restrictions.

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Heavy pressure from the FDIC and SEC over crypto policy has led to Coinbase facing regulatory challenges from several agencies. A court order backing Coinbase’s pursuit of clarity is a potential turning point. It could improve Coinbase’s relationship with U.S. financial regulators.

Coinbase Pushes for FDIC Transparency on Crypto Policies

Over the past year, Coinbase has partnered quite actively in forcing transparency from U.S. financial regulators. They did so by filing several FOIA requests. These filings request that the FDIC disclose the cap on crypto depositora. As well as reveal any other restrictions that crypto firms may find as a part of the FDIC’s ongoing Committee on Payments and Market Infrastructure.

According to Grewal, the FDIC was allegedly limiting banks by placing a cap on how much of their deposits banks could accept as crypto-related deposits, capped at 15%.

The exchange also said that the FDIC imposed these caps without a customary public comment period.

Too much of this lack of transparency is blocking both the businesses and the consumers from actually appreciating, as are the regulators.

What exactly are the regulators’ proper stand around the digital asset?” Coinbase argued. Coinbase’s latest hope is that the court’s order will clarify what the FDIC knew and the timeline with which it acted internally about crypto.

Coinbase sued the FDIC and SEC in June, saying they hadn’t responded to FOIA requests about crypto policy. The firm is concerned with inconsistent and non-transparent regulatory guidance, which, it says, makes it hard to innovate and keep the industry stable.

Coinbase Seeks Transparency in FDIC Crypto Policies

As an example, Coinbase’s FOIA requests are focused on documents related to ‘Operation Chokepoint 2.0.’ It is a program that appears to have pressured banks to end the level of relationship they had with industries, including cryptocurrency.

We learned Coinbase had discovered through the FOIA process that the FDIC had sent “pause letters” to banks, telling them to stop crypto services. However, the company believes these findings are provocative evidence of unfairly biased actions against the crypto sector.

Coinbase requested documents regarding the agency-imposed deposit caps and the limitations on crypto firms’ services. Coinbase says Grewal’s statement implies the FDIC acted unilaterally without public input—which may be bucking essential regulatory practice.

Coinbase’s legal team says such actions have helped create the ‘crypto crackdown’ on U.S. banks, curtailing growth and limiting cryptocurrency company opportunities.

Filing these FOIA requests aims to create a clean slate. As well as a basis of clarity within the broader cryptocurrency industry and drive for transparency in the regulatory process.

According to the company, clearer guidelines will help crypto firms and consumers. These people need reliable information when dealing in the digital asset market.

Grewal views this latest development as a promising indication of change, as the court’s order requires the FDIC to disclose the requested documents. This decision may signal greater accountability for U.S. regulators overseeing the crypto industry.

Coinbase’s legal strategy, centered on FOIA requests and court actions, reflects its commitment to advocating for precise and consistent regulation.