Coinbase asks DC Court to revive the lawsuit against FDIC

Coinbase, one of the leading US cryptocurrency exchanges, has a pending motion before the DC District Court to revive the Freedom of Information Act law suit against the government agency, Federal Deposit Insurance Corporation (FDIC).

The exchange says the FDIC still withheld some important documents and has not fully cooperated with the request for information.

The lawsuit seeks to force the FDIC to hand over a record of conversations with banks related to cryptocurrency actions.

Coinbase is seeking court intervention as FDIC cooperation declines in operational Choke Point 2.0 disputes

Coinbase is involved in a month-long battle with FDIC. The company has been pursuing FDICs that surpass Choke Point 2.0 operations for several months, achieving impressive results. Nevertheless, Coinbase is asking the DC District Court to resume lawsuits against regulators.

Legal measures were suspended in February 2025 after President Trump appointed Travis Hill as acting chairman of the FDIC. Hill pledged to increase transparency in agencies beyond the requirements of the FOIA, raising hope that the matter could be resolved in court.

Still, Coinbase’s Chief Justice Officer Paul Grewal says there is ongoing dissatisfaction with FDIC’s transparency. He acknowledges that cooperation has improved under the new leadership, but still feels that it is not enough.

“The FDIC has unfortunately stopped sharing information and is asking the courts to resume their lawsuits. We wanted to resolve this outside of the legal system, but we are grateful for the increased cooperation seen from the new FDIC leadership.

As a key US financial regulator overseeing the bank, FDIC played a central role in running Choke Point 2.0, limiting the bank’s interactions with the cryptocurrency business. However, recently launched a pro-cryptoturn, released related documents, and revoked some of its anti-crypto restrictions.

Grewal says from the FDIC “We are grateful for the increased cooperation.” However, he pointed out that cooperation had halted several weeks ago.

According to a Coinbase submission, FDIC had not sent any new information since late February, claiming that subsequent requests in early March were “irrational and beyond the scope of discovery.”

FDIC is expected to respond to Coinbase’s movement within two weeks.

Coinbase drives court litigation as FDIC overreach could change the future of crypto innovation

Choke Point Operation Point 2.0 is a term used by certain federal regulators and agencies, including FDIC, for a set of actions that are allegedly taken to limit bank access to certain high-risk or controversial industries, including cryptocurrency businesses.

Critics say this is a subtle ploy to kill crypto space by exchanging ecosystem access to traditional banking services, denying brokerages and other players.

Coinbase claims that actions taken specifically through informal guidance and informal pressure on banks have launched an adversarial environment for the cryptocurrency business under the FDIC.

These businesses have illegally restricted access to banking services and placed crypto companies in a relatively disadvantaged position in the financial sector.

As part of an effort to revive the case, Coinbase is calling for court intervention to force the FDIC to answer such oversights in the future. Coinbase claims that such overreach will make innovation in the digital asset market colder.

Cryptocurrency Companies argues that FDIC’s actions violate both legitimate processes and initial revisions, as they believe they should not be punished based on the business that they choose to operate.

If Coinbase succeeds in reviving the lawsuit, its impact could be swept over both the cryptocurrency industry and the regulatory body.