Coinbase moves to revive lawsuit against FDIC

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 it calls “Operation Chokepoint 2.0”—an alleged coordinated effort by regulators to restrict the crypto sector’s access to banking services.

History Associates has also filed a motion against the FDIC

Coinbase’s lawsuit echoes a parallel legal effort by History Associates Incorporated, which also filed a motion on March 31, 2025, to lift a stay in its own FOIA case against the FDIC.

History Associates claims the FDIC has failed to cooperate in an informal information-sharing process ordered by the court, refusing to provide details about its FOIA practices, such as document preservation and search methods.

Both lawsuits highlight growing frustration with the FDIC’s opacity, despite its promises of openness under Hill’s leadership.

Notably, the stakes are high for Coinbase, as the documents it seeks could reveal the extent of regulatory pressure on banks to limit crypto dealings.

Previous FOIA requests have uncovered letters from the FDIC advising banks to pause such activities, fueling suspicions of a deliberate campaign against the industry.

With the FDIC expected to respond to Coinbase’s motion within two weeks, the outcome could set a precedent for how federal agencies handle transparency in the rapidly evolving crypto landscape.