FDIC ‘magically’ releases two more pages of documents to Coinbase

Coinbase secured the release of more unredacted documents from the Federal Deposit Insurance Corporation following a legal battle over its Freedom of Information Act requests. 

The FDIC has released two additional pages of documents that Coinbase has been trying to obtain legally for several months.

The documents, referred to as “pause letters,” show the FDIC advising banks to halt activities related to cryptocurrencies. The letters suggest the agency deliberately limited U.S. banks’ involvement with crypto businesses in 2022.

The documents were shared by Coinbase Chief Legal Officer Paul Grewal on X.

These actions, part of what many describe as “Operation Chokepoint 2.0,” highlight tensions between U.S. regulators and the crypto industry. The term is inspired by the original “Operation Choke Point,” a U.S. Department of Justice initiative launched in 2013, targeting banks and payment processors working with industries deemed high-risk or unsavory, such as payday lenders and firearms sellers.

“Note that FDIC magically found TWO more pause letters in this search after saying before that it had complied with an earlier Court order. It’s hard to believe in their good faith when their sweater further unravels every time we pull on the thread,” Grewal posted.

FDIC’s noncompliance with Coinbase

On December 12, 2024, Judge Ana C. Reyes criticized the FDIC for excessive redactions and noncompliance with earlier court orders. She instructed the agency to make “more thoughtful redactions” and release additional letters. 

The FDIC subsequently disclosed two previously undisclosed letters today, raising questions about the agency’s transparency.

The released documents show that banks were asked to pause all crypto asset-related activities, causing delays in launching crypto services while addressing unclear compliance requirements.

This development adds to a growing debate over regulatory clarity and the role of federal agencies in shaping the crypto landscape. With a Donald Trump presidential victory, many are hoping the FDIC and SEC change their stance on crypto. 

“The new Congress should launch hearings on all this without delay,” posted Grewal.