{"id":40082,"date":"2025-08-02T05:01:41","date_gmt":"2025-08-02T05:01:41","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=40082"},"modified":"2025-08-02T05:01:41","modified_gmt":"2025-08-02T05:01:41","slug":"what-is-the-fdic-hiding-coinbase-demands-crypto-disclosure","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=40082","title":{"rendered":"What Is The FDIC Hiding? Coinbase Demands Crypto Disclosure"},"content":{"rendered":"
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According to court papers<\/a> filed on Tuesday, Coinbase has pushed back hard against the Federal Deposit Insurance Corporation\u2019s latest bid to toss out its Freedom of Information Act lawsuit.<\/p>\n

The exchange wants more details about so-called \u201cpause letters\u201d that the FDIC allegedly sent to banks, telling them to step away from crypto services. Now, Coinbase<\/a> is asking a judge to force the FDIC to explain under oath how it handled those records and to hand over all FOIA denial letters issued between 2020 and 2024.<\/p>\n

Reports Shed Light On Pause Letters<\/h2>\n

Based on reports, the FDIC<\/a> first applied a broad exemption to hide the letters as \u201cconfidential bank examination records.\u201d It paid no mind to sorting facts from analysis.<\/p>\n

Coinbase notes that it took four court orders and six separate document productions for the regulator to cough up the key files. That drawn-out process, the exchange argues, shows that the agency still \u201cstonewalls our efforts to shed light\u201d on past moves that targeted crypto<\/a>.<\/p>\n

Coinbase\u2019s Chief Legal Officer, Paul Grewal, wrote on X that the FDIC staff \u201ccontinue to stonewall our efforts\u201d and that these tactics \u201ccan\u2019t and won\u2019t stand.\u201d<\/p>\n

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We also filed a motion to take additional discovery from the FDIC to get to the bottom of their FOIA practices, which as we\u2019ve seen in our case are far from what the law requires. The agency should testify via a 30(b)(6) deposition and produce the letters it sends to FOIA\u2026<\/p>\n

\u2014 paulgrewal.eth (@iampaulgrewal) July 31, 2025<\/a><\/p>\n<\/blockquote>\n

FDIC Procedures Under Review<\/h2>\n

Reports have disclosed that internal FDIC policy tells examiners to withhold any document touching on Exemption 8 in full, with \u201cno duty to segregate factual from analytical or deliberative material.\u201d<\/p>\n

In a January hearing, regulators admitted they had no formal litigation-hold process for FOIA requests. The initial search also focused only on documents<\/a> shared with the agency\u2019s Office of Inspector General.<\/p>\n

That narrow scope meant important emails and memos\u2014ones that mention \u201cpause letters\u201d directly\u2014were missed at first.<\/p>\n


\nBanking Access Takes Hit<\/p>\n

According to an AIMA survey<\/a>, 75% of crypto funds struggle to get basic banking services. That squeeze on banking partners has snarled transactions and settlement options for firms like Coinbase.<\/p>\n

Banks are now wary of any hint of regulatory risk. If the court orders more sworn testimony, it could shine a light on who really signed off on the \u201cpause letters,\u201d and why examiners thought they had to hide so much.<\/p>\n

In its motion<\/a> for further discovery, Coinbase also wants every FOIA<\/a> denial letter the FDIC sent over a four-year stretch. It\u2019s asking for sworn statements from FDIC officials about how they decided which records to keep secret.<\/p>\n

Featured image from Credit Sesame, chart from TradingView<\/em><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

According to court papers filed on Tuesday, Coinbase has pushed back hard against the Federal Deposit Insurance Corporation\u2019s latest bid to toss out its Freedom of Information Act lawsuit. The exchange wants more details about so-called \u201cpause letters\u201d that the FDIC allegedly sent to banks, telling them to step away from crypto services. Now, Coinbase […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-40082","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/40082","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=40082"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/40082\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=40082"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=40082"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=40082"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}