FDIC ordered to cease ‘blanket redacting’ in Coinbase FOIA case

The Federal Deposit Insurance Corporation has been instructed to fully comply with a court order and make “more thoughtful redactions” to pause letters requested by crypto exchange Coinbase.

On Dec. 12, Judge Ana C. Reyes flagged excessive redactions made by the Federal Deposit Insurance Commission in reply to Coinbase’s Freedom of Information Act complaints.

Judge Reyes pointed to the FDIC’s lack of good faith and subpar court order compliance in documents it provided, according to Coinbase CLO Paul Grewal on X. Grewal added that the agency may also be withholding relevant information from the industry.

In November of 2021 – banks began receiving instructions from the current administration to disengage from any crypto services.. even went on to “debank” targeted customers / businesses. https://t.co/4HrCMMJVTX pic.twitter.com/fGHngO5FFv

— Chad Steingraber (@ChadSteingraber) November 1, 2024

Coinbase, like much of the crypto industry, has lamented rampant debanking executed by U.S. federal agencies. Alleged conspirators in so-called “Operation Choke Point 2.0,” like the FDIC, reportedly ordered financial institutions to deny crypto businesses bank accounts.

You might also like: US gov told banks to suppress crypto, Coinbase documents show

Word from a basket of crypto executives from firms like Custodia and Andreessen Horowitz accused regulators of waging a “concerted, coordinated campaign” to debank tech innovators and blockchain builders.

Last week, documents surrendered by the FDIC showed that the U.S. government ordered banks to suppress crypto, vindicating several industry incumbents who insisted on OCP 2.0 for years.

In November of 2021 – banks began receiving instructions from the current administration to disengage from any crypto services.. even went on to “debank” targeted customers / businesses. https://t.co/4HrCMMJVTX pic.twitter.com/fGHngO5FFv

— Chad Steingraber (@ChadSteingraber) November 1, 2024

Unclear rules for digital assets further beleaguered crypto businesses. Without a standardized framework, industry players decried unchecked information restrictions and stifling bureaucracy from agencies like the FDIC.

Coinbase and others launched legal action to uncover these suspicions. The agitations received renewed vibrance with Donald Trump’s electoral triumph, as the industry anticipated fairer practices and regulations.

Federal agency shakeups started in the wake of Trump’s victory. FDIC chair Martin Gruenberg and Gary Gensler, chair of the Securities and Exchange Commission, announced their resignations.

Pro-crypto investor and former Regulator Paul Atkin was picked to replace Gensler at the SEC, subject to Senate confirmation. Trump also considered tapping Brian Quintenz, a16z crypto policy head, and an ex-federal regulator, to lead the Commodity Futures Trading Commission.

Read more: Texas House eyes Bitcoin reserve laws

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