Paul Grewal, the Chief Legal Officer of Coinbase, has disclosed that the FDIC has been ordered by a judge to disclose the halt letters from Operation Chokepoint 2.0.
CLO of Coinbase In his opinion, the judge in the FDIC FOIA case has ordered the agency to produce the Operation Chokepoint 2.0 pause letters remarkably rapidly. Paul Grewal expressed his gratitude for the Court’s action in this matter.
He described it as a substantial stride toward transparency by the FDIC and other regulators. The exchange is litigating and submitting FOIA requests to compel regulators to provide explicit guidance.
Coinbase Wins Legal Battle Against FDIC
Paul Grewal, the Chief Legal Officer of Coinbase, has disclosed that a judge has ordered the FDIC to disclose the Operation Chokepoint 2.0 delay letters in response to Coinbase’s FOIA request. Grewal commends this action as a critical stride toward regulatory transparency.
https://twitter.com/iampaulgrewal/status/1853494827016688009
In the same vein, Grewal elected to disclose the numerous instances in which the FDIC reportedly directed banks to suspend crypto-related services, as evidenced by Coinbase’s FOIA request.
This legal initiative is a component of the crypto exchange is overarching initiative to compel regulators to clarify their position on cryptocurrency by filing FOIA requests and other actions to promote greater transparency.
This development was not wholly unexpected, as Paul Grewal recently disclosed that Coinbase’s interactions with the FDIC were becoming more apparent.
Grewal then stated that the agency began producing documents in response to Coinbase’s Freedom of Information Act request, which included records regarding the “pause letters” sent to banks as part of Operation Chokepoint 2.0. This occurred following the lawsuit the firm filed to compel compliance by the FDIC.
FOIA Requests for Transparency on Crypto Crackdown Policies from US Regulators
According to Paul Grewal, Coinbase’s chief legal officer, the company has submitted two Freedom of Information Act requests to compel US regulators to disclose information regarding the ongoing crypto crackdown on American banks.
Filings are transmitted to the Federal Deposit Insurance Corporation. It is purported that it directed banks to restrict the amount of deposits from crypto firms to 15% of their total deposits.
Grewal stated in October that these FOIA requests were a component of the endeavor to elucidate regulators’ stance on digital assets. He noted that the initial request pertains to documents associated with the Federal Deposit Insurance Corporation’s (FDIC) limit on banks’ digital asset deposits. The second report detailed limitations imposed by a variety of regulators.
A second FOIA request was submitted to obtain information regarding how regulators had previously addressed similar inquiries.
The FDIC unilaterally implemented these deposit limits without providing a public comment period, as per Coinbase. US law frequently necessitates this type of duration. Grewal clarified that this FOIA filing is distinct from those submitted over a year ago and subject to federal litigation.
In June, Coinbase initiated litigation against the SEC and FDIC for failing to respond to FOIA requests. This encompasses a 2023 request for documentation regarding the SEC’s classification of Ether.
