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Coinbase is alleging that the Federal Deposit Insurance Corporation (FDIC) is hindering court orders and obstructing attempts to reveal documents related to the purported “Operation Chokepoint 2.0,” as stated in recent federal court filings.
Key Takeaways:
- Coinbase asserts that the FDIC is impeding court-mandated disclosures concerning cryptocurrency regulation.
- The matter involves alleged “pause letters” that pressured banks to sever connections with crypto companies.
- Coinbase is advocating for testimony and the complete release of withheld FOIA documents.
The cryptocurrency exchange filed an opposition brief and a motion for additional discovery on Tuesday, contesting the FDIC’s effort to dismiss Coinbase’s Freedom of Information Act (FOIA) lawsuit.
Central to the case are the “pause letters” that the FDIC is accused of sending to banks, urging them to cease services related to cryptocurrency businesses.
Coinbase Legal Chief: FDIC Continues to Withhold Crypto Documents
Coinbase’s Chief Legal Officer, Paul Grewal, publicly announced the legal action on X (formerly Twitter), indicating that FDIC personnel “continue to obstruct our attempts to illuminate” previous actions that he claims intentionally targeted the cryptocurrency sector.
“We cannot and will not accept this,” he stated.
The conflict arises from worries among cryptocurrency advocates that U.S. regulators employed unofficial pressure tactics, similar to the original Obama-era Operation Chokepoint, to dissuade banks from engaging with the crypto industry.
Grewal emphasized that these actions must be fully disclosed to guarantee “they never occur again.”
Court documents reveal that the FDIC did not perform a document-by-document review of the requested materials and instead applied broad exemptions to withhold information.
The industry cannot afford to be complacent. Historic progress at the federal level is undeniable, but it is imperative that we uncover historic misdeeds so that THEY NEVER HAPPEN AGAIN. 3/6
— paulgrewal.eth (@iampaulgrewal) July 31, 2025
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According to Coinbase’s legal team, it took four court orders and six separate document productions for the regulator to supply the pertinent records.
Internal FDIC guidelines revealed during the litigation indicate that the agency instructs staff to fully withhold documents that fall under FOIA Exemption 8, which safeguards confidential bank examination records.
The policy reportedly asserts there is “no obligation to separate factual from analytical or deliberative material.”
Coinbase is now requesting the court to mandate sworn testimony from FDIC officials regarding their handling of the documents and to provide all FOIA denial letters issued between 2020 and 2024 concerning similar records.
FDIC Limited Search, Overlooked Key Crypto Documents: Filing
The filing also emphasizes that the FDIC initially restricted its search to documents shared with its Office of Inspector General (OIG), despite a broader mention of “pause letters” in the OIG’s report. This resulted in several relevant documents being entirely overlooked.
During a January court hearing, the FDIC acknowledged that it did not have a formal litigation hold process for FOIA requests.
Documents subsequently released in February indicated that banks interested in servicing crypto firms were “almost universally met with resistance,” according to statements from the FDIC’s Acting Chair.
As reported, TIME has recognized Coinbase as one of 2025’s 100 Most Influential Companies, describing the crypto exchange as a “disruptor” for its significant influence in shaping U.S. digital asset policies and markets.
TIME highlighted the exchange as a pivotal force behind the industry’s policy initiatives and suggested that Coinbase could evolve into the primary hub for crypto trading in the U.S.
Beyond the U.S., Coinbase is expanding its presence in Europe, obtaining a license under the EU’s MiCA regulatory framework through Luxembourg’s financial regulator.
The post Coinbase Accuses FDIC of Hiding Operation Chokepoint 2.0 Files appeared first on Cryptonews.
