History Associates has partnered with Coinbase in a legal challenge against the Federal Deposit Insurance Corporation (FDIC) of the United States. Their objective is to compel the FDIC to fulfill a Freedom of Information Act (FOIA) request by disclosing certain records.
According to a legal filing dated June 27, the lawsuit arises from the FDIC’s refusal to release documents known as “pause letters.” Allegedly, these letters were sent by the FDIC’s inspector general to financial institutions, instructing them to cease activities related to cryptocurrencies.
Initially, Coinbase enlisted History Associates Incorporated to submit a FOIA request to the FDIC, but the request was denied. Consequently, History Associates has initiated legal proceedings to secure the release of the requested documents.
The lawsuit contends that these “pause letters,” which direct financial entities to halt digital asset operations, represent a strategic maneuver by the FDIC and other regulatory bodies. Their intent, according to History Associates, mirrors previous efforts such as “Operation Choke Point,” where regulators pressured banks to sever ties with specific industries like payday lenders.
Under FOIA guidelines, federal agencies are generally required to disclose requested information unless specific exemptions apply. Even when exemptions do apply, agencies are obliged to disclose non-exempt portions of records.
Despite these provisions, the FDIC declined to release the “Pause Letters,” citing exemptions related to trade secrets and examination materials without providing detailed rationale.
The core objective of the lawsuit is to compel the FDIC to divulge the “Pause Letters” and associated documents. These disclosures are expected to shed light on the FDIC’s actions concerning the digital asset industry, revealing their extent and underlying motivations.
Additionally, History Associates seeks to hold the FDIC and other regulatory bodies accountable for their actions and promote transparency in regulatory practices.
Separately, Coinbase is embroiled in another legal dispute with the U.S. Securities Exchange Commission (SEC). The SEC has accused Coinbase of operating an unregistered exchange trading securities illegally. Despite this challenge, legal analysts like Elliott Stein foresee a favorable outcome for Coinbase in their case against the SEC.
In related news, El Salvador’s national Bitcoin initiative has garnered attention, influencing discussions in Argentina.