- Coinbase has filed a legal brief accusing the FDIC of unlawfully withholding documents related to its crypto oversight, including letters allegedly pressuring banks to halt crypto services.
- The lawsuit aims to expose potential government bias against the crypto industry and prevent future violations of the Freedom of Information Act (FOIA).
In a legal showdown that could reveal the U.S. government’s behind-the-scenes posture toward crypto, Coinbase has filed an opposition brief against the Federal Deposit Insurance Corporation (FDIC) in a Freedom of Information Act (FOIA) lawsuit.
The case, currently before the U.S. District Court for the District of Columbia, challenges the FDIC’s refusal to release documents related to its oversight and potential suppression of cryptocurrency activities.
Coinbase Pushes Back on “Pause Letters” Secrecy
At the heart of the dispute are so-called “pause letters” documents allegedly sent by the FDIC to banking institutions instructing them to halt their crypto-related services. Coinbase, through its FOIA agent History Associates, argues that these letters, along with related policy documents, should be public information.
The FDIC, however, has invoked FOIA Exemption 8, claiming the records are shielded because they pertain to financial supervision and examination.
Coinbase’s Chief Legal Officer Paul Grewal took to X to share details of the filing, describing the FDIC’s actions as part of a broader pattern of opaque and hostile behavior toward crypto. He accused the agency of systematically blocking public access to information, using vague justifications and improper redactions to keep critical documents out of the public eye.
Yesterday @Coinbase filed our opposition brief to the @FDICgov’s motion to dismiss and motion for summary judgment in our FOIA case. Tl;dr: staff at @FDICgov continue to stonewall our efforts to shed light on the previous administration's Operation Chokepoint 2.0. We can't and…
— paulgrewal.eth (@iampaulgrewal) July 31, 2025
Court Already Rejected Blanket Withholding
This is not the first legal clash in the case. A prior court order had already rejected the FDIC’s blanket refusal to release the documents, instructing the agency to produce redacted versions instead.
However, newly released internal instructions, obtained through limited discovery, suggest the FDIC may have had a standing policy to withhold such documents without adequate review.
Coinbase’s latest brief claims the FDIC failed to follow FOIA’s legal obligations, including the requirement to interpret requests liberally and release non-exempt portions of requested documents. Moreover, it accuses the agency of not preserving relevant records and of acting in a way that could set a dangerous precedent for other federal agencies to avoid transparency in crypto oversight.
Coinbase Seeks Court Intervention
In addition to requesting the release of the withheld records, Coinbase is urging the court to declare the FDIC’s approach unlawful under FOIA. The crypto firm warns that without judicial intervention, similar requests, some of which are already pending, could face the same fate, leaving the public in the dark about how federal regulators are shaping the future of crypto banking.
The FDIC, for its part, has moved to dismiss the case, arguing that Coinbase has not proven any legal violation. But Coinbase insists the facts, and the agency’s own training materials, demonstrate a clear misuse of FOIA exemptions.
This case could have far-reaching implications. If Coinbase prevails, it may uncover evidence of a coordinated effort by U.S. regulators to marginalize crypto firms by pressuring banks behind closed doors. At stake is not just transparency, but the future accessibility of banking services for the entire crypto industry.
