Coinbase CLO Slams FDIC Delay Tactics In FOIA Lawsuit

Coinbase CLO Paul Grewal has shared a new update on the trading platform’s Freedom of Information Act (FOIA) lawsuit against the US Federal Deposit Insurance Commission (FDIC). This case, which is now lingering, suggests the banking regulator is using delay tactics in adhering to previous court orders.

Coinbase Versus FDIC: What is New?

A court filing from the U.S. District Court for the District of Columbia revealed that the FDIC had asked for an additional 16 days to decide if it needed even more time to respond to Coinbase’s FOIA request.

The filing is part of History Associates’ lawsuit against the FDIC on behalf of Coinbase. The firm demands records about the FDIC’s alleged role in discouraging banks from working with cryptocurrency companies.

Coinbase Chief Legal Officer Paul Grewal strongly criticized the FDIC’s move in his X post. He said it was unacceptable for the agency to ask for more time when it missed multiple deadlines. 

Per the recent court document, Jonathan C. Bond and Paul Grewal said the FDIC’s conduct showed a clear pattern of delay and resistance. They pointed out that the agency had released documents so heavily redacted that they revealed almost nothing of value.

This follows earlier concerns raised by the exchange, where it blamed the FDIC for refusing to cooperate in its request for records related to Operation Choke Point 2.0.

According to reports, the lawsuit was filed in February 2024. Since then, Coinbase said the FDIC’s actions go against the transparency rules set by FOIA laws. 

Victory Over FDIC and Implications

Coinbase has recorded an important victory in this FDIC case since it started. A court order asked the FDIC to release the requested document, a move the agency complied with, with a caveat.

On March 15, 2025, the exchange raised issues with how the FDIC handled its FOIA request concerning Operation Choke Point 2.0. The few documents that were handed over revealed little because of redactions.

This case could affect how government agencies respond to future FOIA requests from companies in the crypto space. 

If Coinbase succeeds, it may force federal agencies to be more open in their dealings with digital asset firms, setting a precedent that could benefit the broader industry.

Coinbase Exchange and the US SEC

It is worth mentioning that Coinbase is also engaged in a separate FOIA dispute with the United States Securities and Exchange Commission. 

As reported earlier by CoinGape, the top crypto exchange bagged a win in the case as the court warned the SEC of possible sanctions. On March 28, 2025, Judge Ana Reyes denied the agency’s request for more time and ordered it to meet an April 11 deadline to release key documents.

The exchange’s demands hinge on the discovery of the financial records expended by the US SEC in its crypto crackdowns.