Coinbase asked a DC District Court if it could resume its old lawsuit against the FDIC. Coinbase sued this regulator over Operation Choke Point 2.0 and claimed that it’s still refusing to release relevant information.
Based on the information available so far, it’s difficult to draw definitive conclusions. The FDIC maintains that it responded to its opponents’ questions truthfully, though it has shown delays in the past.
Coinbase vs the FDIC
Coinbase, one of the world’s largest crypto exchanges, has been in a few fights with the FDIC. The firm has been pursuing the FDIC over Operation Choke Point 2.0 for months now, and has achieved impressive results. Despite this, however, Coinbase is asking the DC District Court to resume its litigation against the regulator:
“We’re asking the Court to resume our lawsuit because the FDIC has unfortunately stopped sharing information. While we would have loved to resolve this outside of the legal system – and we do appreciate the increased cooperation we’ve seen from the new FDIC leadership – we still have a ways to go,” claimed Paul Grewal, Coinbase’s Chief Legal Officer.
The FDIC has an important role in US financial regulation, primarily dealing with banks. This gave it a starring role in Operation Choke Point 2.0, hampering banks’ ability to deal with crypto businesses. However, it recently started a pro-crypto turn, releasing tranches of incriminating documents and revoking several of its anti-crypto statutes.
Grewal said that he “appreciated the increased cooperation” from the FDIC but that the cooperation stopped weeks ago. According to Coinbase’s filing, the FDIC hasn’t sent any new information since late February and claimed in early March that the exchange’s subsequent requests were “unreasonable and beyond the scope of discovery.”
On one hand, the FDIC has previously been slow to make relevant disclosures in the Coinbase lawsuit. On the other hand, Operation Choke Point 2.0 sparked significant tension within the industry, and a determined group is now aiming to significantly weaken the regulatory bodies involved.
Until the legal battle continues, it’ll be difficult to make any definitive statements. The FDIC will likely have two weeks to respond to Coinbase’s request.
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