Coinbase Chief Legal Officer Paul Grewal has sharply criticized the Federal Deposit Insurance Corporation (FDIC) for what he calls “absurd” stall tactics in a Freedom of Information Act (FOIA) lawsuit.
The dispute, detailed in a Thursday court filing, revolves around the FDIC’s request for a 16-day extension to respond, which Coinbase opposes as “legally incorrect” and unwarranted.
The lawsuit seeks internal FDIC documents that Coinbase believes will explore “Operation Chokepoint 2.0,” an alleged covert campaign to isolate crypto firms from the U.S. financial system.
Grewal took to X to vent frustration, noting the FDIC’s 13-page motion for more time, just to decide if it needs even more delay, is excessive. He argued that the agency’s response deadline is April 16, not May 2 as claimed, and it has had months to prepare.
In February, the FDIC released nearly 800 pages of documents under pressure, revealing how banks were discouraged from serving crypto companies due to “reputation risk” or safety concerns, even without financial system threats.
Coinbase and CEO Brian Armstrong have called this a “coordinated effort” and “unethical,” accusing the Biden administration of suppressing the industry behind closed doors.
The controversy has drawn scrutiny from the House Oversight Committee, which is investigating whether the FDIC and other regulators improperly “debanked” lawful businesses. Lawmakers are now demanding documents and testimony from Coinbase and others, putting more heat on the agency.
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