tl;dr
Coinbase's chief legal officer, Paul Grewal, has accused the Federal Deposit Insurance Corporation (FDIC) of withholding vital records related to the agency's actions to prevent banks from offering crypto-related services. Grewal claims the FDIC is being deceitful and obstructive in responding to Co...
Coinbase’s chief legal officer, Paul Grewal, has accused the Federal Deposit Insurance Corporation (FDIC) of withholding vital records related to the agency's actions to prevent banks from offering crypto-related services. Grewal alleges that the FDIC is being deceitful and obstructive in responding to Coinbase's Freedom of Information Act (FOIA) requests for "pause letters" sent to banks. As a result, Grewal has filed a motion for federal court intervention, claiming that the FDIC has limited its search for pause letters and is engaging in bad faith practices. Despite the resistance, Grewal vows to continue pursuing the information.
Grewal previously stated that the information received so far confirms the US government's attempt to undermine the digital asset industry. He cited examples of FDIC requesting banks to pause crypto activities without clear regulatory guidance.
In a new thread on the social media platform X, Grewal accuses the FDIC of being deceitful and refusing to hand over vital records regarding how the agency moved to prevent banks from offering crypto-related services. Coinbase has been using the Freedom of Information Act (FOIA) to uncover instances of the FDIC asking banks to freeze crypto services, known as “pause letters,” but Grewal says they are not fully complying.
Coinbase-hired law firm History Associates has filed a motion asking the federal court to intervene. Grewal stated, “A picture of deceit, obfuscation, and bad faith is coming into focus at FDIC. We’re reporting to the federal court that the agency once again stonewalled legitimate requests for information in our case and that we’re moving to amend our FOIA complaint to address their violations of law."
"I will not presume to speak for the Court or Congress. But if FDIC thinks they can win in a staring contest against Coinbase or the industry, they clearly underestimate us and our commitment to the law. We’re not going anywhere. And our lawyers aren’t going anywhere," vowed Grewal.
Last month, Grewal said the information they received so far has confirmed the notion that the US government was attempting to undermine the digital asset industry. One example included in the documents reveals an FDIC assistant regional director asking an unnamed bank in Dallas, Texas, to pause its crypto activities in 2022 because the FDIC "has not determined what, if any, regulatory filings will be necessary for a bank to engage in this type of activity."