Coinbase Accuses FDIC of FOIA Delay Tactics
Coinbase currently faces more legal challenges with the FDIC as part of its ongoing struggle for crypto sector clarity. The federal banking regulator asked the court for more time to respond because Coinbase made a Freedom of Information Act (FOIA) lawsuit.
The case at U.S. District Court for the District of Columbia targets the FDIC’s refusal to release information about its cryptocurrency firm restrictions under Operation Choke Point 2.0. The lawsuit History Associates brought on behalf of Coinbase in February 2024 seeks documents that show if FDIC influenced banks away from serving digital asset companies.
Coinbase CLO Blasts FDIC Over Missed Deadlines
The FDIC requests another 16 days to examine their response requirements before telling Coinbase what needs to happen next. In his Twitter post, Chief Legal Officer Paul Grewal uses strong words to condemn how the Federal Deposit Insurance Corporation delays responding to Coinbase requests.
Grewal and Bond demonstrated in their court documentation that the FDIC fell behind deadlines and delivered heavily self-censored documents that failed to help the legal case. Their submission says these actions do not follow the required transparency requirements of FOIA laws.
Court Sets April Deadline in Coinbase–SEC FOIA Battle
Coinbase has previously taken legal action against government bodies before this instance. Coinbase fights two parallel FOIA cases with both the FDIC and SEC. U.S District Judge Ana Reyes established an April 11 deadline for the SEC to deliver their crypto enforcement finance records even though they asked for more time in that case against Coinbase.
The company succeeded in making FDIC release documents through court order but Cocaine claims the extensively blacked-out parts do not offer substantive information. On March 15, Coinbase pointed out once more that the requested documents supplied by the FDIC lacked sufficient information.
The legal outcome of this case will affect everyone participating in this industry. If Coinbase wins its case it will set a key standard that makes U.S. regulators tell more about their crypto-related decisions. Judges will use current legal decision-making to direct how well crypto companies see their financial regulator meetings moving forward.
The company moves ahead to champion open practices and support fair regulations of crypto enterprises in the US. This case becomes a turning point between crypto companies and US financial regulators because of increasing digital asset oversight.
