History Associates has partnered with Coinbase in a legal challenge against the Federal Deposit Insurance Corporation (FDIC) of the United States. The objective is to compel the FDIC to comply with a Freedom of Information Act (FOIA) request and release certain records.
According to a legal filing dated June 27, the lawsuit is a response to the FDIC’s decision to withhold documents referred to as “pause letters.” These letters, allegedly issued by the agency’s inspector general, direct financial institutions to cease activities related to cryptocurrencies.
Coinbase enlisted History Associates Incorporated to submit a FOIA request to the FDIC, which was denied. Consequently, History Associates has initiated legal proceedings to compel the FDIC to disclose the requested records.
The lawsuit contends that these “pause letters,” which advise financial firms to suspend digital asset activities, represent a strategic maneuver by the FDIC and other regulatory bodies to pressure financial institutions into isolating businesses involved in digital assets from the banking system.
History Associates draws parallels with a previous initiative called “Operation Choke Point,” where regulators exerted pressure on banks to sever ties with specific industries such as payday lenders.
Under FOIA regulations, federal agencies are generally required to disclose requested information unless specific exemptions apply. Even in cases where exemptions do apply, agencies must release non-exempt portions of records.
Despite these legal standards, the FDIC declined to release the “Pause Letters,” citing exemptions related to trade secrets and examination materials, without providing detailed justification.
The primary objective of the lawsuit is to compel the FDIC to release the “Pause Letters” and related documents, which are expected to shed light on the FDIC’s actions against the digital asset industry.
Moreover, the suit aims to ensure accountability and transparency in the regulatory practices of the FDIC and other agencies involved.
In addition to this litigation, Coinbase is currently embroiled in a separate legal dispute with the U.S. Securities Exchange Commission (SEC), which has accused the cryptocurrency exchange of operating an unregistered securities exchange. Despite this challenge, legal analysts suggest that Coinbase has a strong case against the SEC.
In other news, El Salvador’s national Bitcoin initiative has been garnering attention in Argentina.
[Image: Suit forcing the FDIC to release the Pause Letters and other related documents. Source: Coinbase]