FDIC Pays $188K and Ends Fight Over Crypto Pause Letters

Crypto News Regulation

FDIC Pays $188,440, Drops Fight Over Withheld Crypto Pause Letters

Written by Aaron S.,

Editor-In-Chief

Last Updated: February 09, 2026

Key Takeaways

The FDIC agreed to pay $188,440 in legal fees and closed a dispute over withheld crypto-related letters;
A FOIA lawsuit revealed letters that urged banks to limit or stop certain crypto activities;
A judge ruled that the FDIC violated FOIA by blocking the letters without a proper document-level review.

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FDIC Pays $188,440, Drops Fight Over Withheld Crypto Pause Letters

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The Federal Deposit Insurance Corporation (FDIC) closed a records dispute after agreeing to cover $188,440 in legal fees and end its attempt to keep certain crypto-related letters confidential.

The settlement ends a FOIA lawsuit that focused on documents showing how banks were urged to stop or scale back plans involving digital asset services.

The case began when History Associates Incorporated, acting on behalf of Coinbase $2.04B , requested access to the letters. The FDIC declined to release them, which led to a court challenge in Washington, DC.

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The request became more significant after the agency’s Office of Inspector General issued a report in October 2023. That report noted that the FDIC had sent messages to banks "asking them to pause, or not expand, planned or ongoing crypto-related activities".

A federal judge ruled in November 2025 that the FDIC “violated FOIA” by blocking the letters through a broad withholding approach rather than reviewing each document individually.

The judge also stated that the agency “redacting information in the pause letters that is not subject to Exemption 8 or would not impair any interest protected by Exemption 8".

In a joint status filing, the FDIC committed to pay the full attorney fees requested and to update parts of its FOIA process.

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