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

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

The FDIC has released another two-page document that Coinbase has been trying to legally obtain for several months.

The documents, called “pause letters,” show that the FDIC advised banks to halt cryptocurrency-related activities. The letters show that the agency is deliberately limiting U.S. banks’ involvement in crypto businesses in 2022.

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

Finally, we received the unredacted OCP 2.0 letters. @FDICgov. The court ruled, but now you can read them for yourself below. They are making a coordinated effort to shut down a wide range of crypto activities, from basic BTC transactions to more complex offerings. 1/3

— paulgrewal.eth (@iampaulgrewal) January 3, 2025

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

“Note that the FDIC magically found TWO more cease and desist letters in this search after previously saying it had complied with an earlier Court order. “It’s hard to believe in their good intentions when their sweaters unravel more and more every time we pull the thread,” Grewal said.

FDIC non-compliance with Coinbase

On December 12, 2024, Judge Ana C. Reyes criticized the FDIC for making excessive adjustments and failing to comply with previous court orders. He instructed the agency to do “more thoughtful editing” and publish additional letters.

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

I’m supposed to be off-grid in the jungles of Costa Rica, but I’ll scan these. So far my suspicions seem correct. But FDIC pause letters extend beyond the bitcoin access product offered by NYDIGhttps://t.co/9E3xxLkNnF

— nic carter (@nic__carter) January 3, 2025

The published documents show that banks have been asked to pause all crypto-asset-related activities, causing delays in the launch of crypto services while they address unclear compliance requirements.

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

“The new Congress should start hearings on all of this without delay,” Grewal said.