Coinbase Resumes Lawsuit Against FDIC Over FOIA Request

American cryptocurrency exchange Coinbase is not relenting in its pursuit of clarity and transparency in crypto regulation. In a recent move, the firm filed a motion in the D.C. District Court to resume its Freedom of Information Act lawsuit (FOIA) against the Federal Deposit Insurance Corporation (FDIC) over Operation Chokepoint 2.0. SEC and FDIC in Legal Tussle With Coinbase Coinbase has accused the agency of intentionally withholding crucial documents. The digital asset service provider says the FDIC and even the United States Securities and Exchange Commission (SEC) fail to fully cooperate with its information requests, including obtaining records of the FDIC’s communications with financial institutions over cryptocurrency activities. Markedly, Coinbase is very particular about the so-called “pause letters” that the FDIC sent to banks, instructing them to halt crypto-related services. This lack of clarity has frustrated Coinbase and motivated it to intensify its fight to expose what it sees as unfair targeting of the crypto industry. Coinbase is Still Dissatisfied With FDIC In February, the exchange held off on the lawsuit against the agency. This was when President Donald Trump appointed Travis Hill as acting FDIC chairman. Speaking to the matter on the ground, Hill pledged to enhance the FDIC’s transparency beyond FOIA requirements. Many believed the matter would be resolved outside of court on this premise. However, the recent Coinbase move suggests otherwise. According to Coinbase’s Chief Legal Officer, Paul Grewal, there is an ongoing dissatisfaction with the FDIC’s transparency. At first, he acknowledged that the agency’s cooperation had improved under Hill’s leadership. Still, he does not think that it is sufficient. FDIC Lifts Restrictions on Crypto Banking The new agency leadership has implemented changes, including lifting the restrictions on crypto banking . It has overturned a 2022 policy that required financial institutions to request government approval before engaging in cryptocurrency activities. By taking this approach, the FDIC seeks to promote more seamless interaction between financial institutions and the digital assets sector. Concerns about fraud, volatility, and financial stability have prompted agencies to be cautious. This eventually resulted in banks cutting ties with crypto firms and accusations that regulators were deliberately pushing digital assets out of the traditional financial system. The lifting of the restriction may help change the narrative. The post Coinbase Resumes Lawsuit Against FDIC Over FOIA Request appeared first on TheCoinrise.com .