Coinbase Secures Major Win In FOIA Case Against US FDIC

by

As a seasoned researcher with a knack for unraveling the mysteries of financial regulations, I am thrilled to witness Coinbase’s significant victory in their legal battle against the FDIC. The rapid response from the court ordering the production of Operation Chokepoint 2.0 pause letters is a testament to the power of persistence and transparency in our democratic system.

According to Paul Grewal, Coinbase’s Chief Legal Officer, the judge presiding over their FDIC FOIA case has expeditiously ordered the release of the Operation Chokepoint 2.0 pause letters. He is greatly appreciative of the court’s decision in this matter.

He announced it as a significant step toward transparency by the FDIC and other regulators. Coinbase is litigating and filing FOIA requests to force regulators to provide clear guidance.

Coinbase Secures Victory in Legal Battle Against FDIC

According to Paul Grewal, Coinbase’s Chief Legal Officer, a judge has mandated the Federal Deposit Insurance Corporation (FDIC) to disclose the Operation Chokepoint 2.0 pause letters in response to Coinbase’s Freedom of Information Act (FOIA) request. This action, as per Grewal, signifies an essential stride towards regulatory transparency.

With remarkable speed, the judge overseeing our Freedom of Information Act (FOIA) case at the Federal Deposit Insurance Corporation (FDICgov) has instructed the agency to disclose the Operation Chokepoint 2.0 pause letters. We express gratitude for the court’s attention. Transparent light is now approaching.

— paulgrewal.eth (@iampaulgrewal) November 4, 2024

Similarly, Grewal chose to disclose that Coinbase’s FOIA request uncovered several instances where banks were allegedly directed by the FDIC to cease offering crypto-related services. This legal initiative forms part of Coinbase’s larger strategy aimed at persuading regulators to define their position on cryptocurrencies by submitting FOIA requests, taking further actions, and advocating for increased transparency.

It’s worth noting that this turn of events wasn’t completely surprising, given that Paul Grewal recently hinted that Coinbase’s dealings with the FDIC were becoming clearer just a few days ago.

Initially reluctant, the agency eventually provided documents in response to Coinbase’s Freedom of Information Act petition, revealing records concerning the “pause letters” dispatched to banks as part of Operation Chokepoint 2.0. Grewal commented after the lawsuit that the firm initiated to enforce the FDIC’s compliance.

FOIA Requests Against US Regulators for Transparency on Crypto Crackdown Policies

1) According to Coinbase’s Chief Legal Officer, Paul Grewal, Coinbase has submitted two petitions under the Freedom of Information Act to compel U.S. regulators to reveal details about the ongoing clampdown on cryptocurrency activities by American banks. These requests have been directed towards the Federal Deposit Insurance Corporation (FDIC). It is claimed that the FDIC may have advised banks to restrict deposits from crypto companies to a maximum of 15% of their total deposits.

In October, Grewal stated that these Freedom of Information Act (FOIA) requests were aimed at understanding the regulatory stance towards digital assets. He explained that the initial request sought documents related to the Federal Deposit Insurance Corporation’s (FDIC) limit on banks’ digital asset deposits, while the second request reported regulations imposed by different regulators.

In a subsequent Freedom of Information Act (FOIA) inquiry, we aimed to gather details on how regulatory bodies have historically addressed similar data disclosure petitions.

As stated by Coinbase, the FDIC implemented these deposit limits without providing an opportunity for public discussion or comment, which is typically required under U.S. law. Later on, Grewal clarified that this Freedom of Information Act (FOIA) request differs from those filed over a year ago, and is not related to ongoing federal legal proceedings.

As a researcher, I find myself compelled to bring attention to a legal matter I’ve been involved in. In June, I initiated lawsuits against both the Securities and Exchange Commission (SEC) and the Federal Deposit Insurance Corporation (FDIC), due to their failure to respond to Freedom of Information Act (FOIA) requests. Among these requests is one made in 2023 for documents that shed light on the SEC’s stance regarding the classification of Ether, a matter of significant interest in my ongoing research.

Read More

2024-11-04 22:24