The post Coinbase moves to revive lawsuit against FDIC appeared on BitcoinEthereumNews.com.

Coinbase is seeking FDIC docs on crypto ‘pause letters’. The lawsuit has resumed after the FDIC’s transparency fell short. History Associates has also filed a motion to lift a stay in its own FOIA case against the FDIC. Coinbase, a leading US-based cryptocurrency exchange, has filed a motion in the D.C. District Court to revive its Freedom of Information Act (FOIA) lawsuit against the Federal Deposit Insurance Corporation (FDIC). The exchange alleges that the FDIC has been withholding critical documents related to its communications with banks about cryptocurrency activities. Specifically, Coinbase is seeking records tied to the so-called “pause letters,” which reportedly instructed banks to halt crypto-related services, a move the company views as part of a broader effort to stifle the industry. Why is Coinbase reviving the lawsuit? This legal action marks the resumption of a case that was initially paused in February 2025 following the appointment of Travis Hill as acting FDIC chairman by President Trump. Hill had pledged to enhance the agency’s transparency beyond FOIA requirements, raising hopes that Coinbase might obtain the information it sought without further litigation. The pause reflected an optimistic moment, suggesting a potential shift in the FDIC’s approach under new leadership. However, Coinbase’s Chief Legal Officer, Paul Grewal, recently expressed to journalist Eleanor Terrett that while cooperation has improved, it remains insufficient, prompting the company to push forward with the lawsuit. Also, the FDIC’s recent policy shift adds context to Coinbase’s persistence. The FDIC had announced that banks no longer need prior approval to engage in legally permitted cryptocurrency activities, provided they manage associated risks effectively. However, FDIC reversed the policy, departing from the previous administration’s cautious stance and signaling a more crypto-friendly environment. However, Coinbase argues that this change does not negate the need for transparency about past actions, particularly what…

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Filed under: News - @ March 31, 2025 8:21 pm