Coinbase has filed a legal objection against the Federal Deposit Insurance Corporation (FDIC) for delaying the release of documents linked to the alleged debanking of crypto companies. On April 10, the cryptocurrency exchange opposed the FDIC’s request for a 16-day extension in a Freedom of Information Act (FOIA) lawsuit. Paul Grewal, Coinbase’s Chief Legal Officer, criticized the request as “absurd,” highlighting that the FDIC used 13 pages to ask for more time to consider further delays.
Coinbase accused the FDIC of stalling and not fulfilling its FOIA obligations, arguing that heavily redacted documents provided no real insight. The exchange challenged the FDIC’s new deadline of May 2, insisting the actual due date is April 16, claiming the agency is misconstruing FOIA deadlines to avoid legal responsibilities.
This legal dispute is part of Coinbase’s broader campaign to uncover the government’s involvement in crypto debanking. Previous court-ordered disclosures exposed internal FDIC documents showing pressures on U.S. banks to sever ties with crypto firms. While some banks were told to halt services pending regulatory clearance, others were warned of reputational risks.
Coinbase maintains that these disclosures are only the beginning and continues to push for transparency to fully understand the FDIC’s actions against crypto businesses. Meanwhile, the FDIC is working on aligning with the crypto industry, revoking anti-crypto regulations, and developing a clearer framework for banks dealing with digital assets.
