Coinbase Fights FDIC Over Hidden Crypto ‘Pause Letters’

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Written by Aaron S.,

Editor-In-Chief

Last Updated: August 01, 2025

Key Takeaways

Coinbase claimed that the FDIC is still withholding crypto-related records despite multiple court orders requiring their release;
The disputed "pause letters" allegedly urged banks to cut off crypto firms, raising concerns over coordinated regulatory pressure;
Coinbase wants sworn testimony and past FOIA denial letters to examine how the FDIC handled document reviews and exemptions.

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Coinbase $2.6B has accused the Federal Deposit Insurance Corporation (FDIC) of continuing to hold back important records, despite being told by the court to release them.

The dispute centers on documents known as "pause letters", which the FDIC reportedly sent to banks asking them to stop offering services tied to cryptocurrency.

In a court filing on July 29, Coinbase asked a federal judge to reject the FDIC’s request to dismiss its lawsuit under the Freedom of Information Act (FOIA). The crypto exchange said these records could show that regulators discouraged banks from working with crypto companies in a coordinated effort, often referred to as "Operation Chokepoint 2.0".

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Paul Grewal, Coinbase’s Chief Legal Officer, stated in a series of posts on X on July 31 that the FDIC has been making it difficult to get access to the full set of documents and that the company plans to keep pushing until more information is released.

According to the court filing, it took four separate court orders and six partial releases before the FDIC finally admitted to having all of the requested records. Coinbase also said the agency used a broad interpretation of FOIA rules to avoid reviewing the documents one by one.

Instead, the FDIC treated all the records as exempt under a rule meant to protect bank examination materials, even though the law usually requires a case-by-case review.

Coinbase wants agency officials to explain how the document review was handled. In addition, it is requesting copies of all denial letters the FDIC sent to other FOIA requesters between 2020 and 2024, in cases where bank-related documents were withheld.

Recently, Coinbase released a satirical video titled Everything Is Fine. What is the video about? Read the full story.