The cryptocurrency exchange is facing an uphill battle against the protected agency
History Associates has united with cryptocurrency exchange Coinbase in a lawsuit against the US Federal Deposit Insurance Corporation (FDIC). They hope their combined efforts can force the agency to comply with a Freedom of Information Act (FOIA) request and release certain financial records.
According to the June 27 filing, the suit is in reaction to the FDIC withholding “pause letters,” documents that the inspector general supposedly sent to financial institutions ordering them to cease activities related to cryptocurrency.
Coinbase employed History Associates Incorporated to propose a FOIA request to the FDIC, which was rejected. History Associates reacted with the suit to push the FDIC to release the requested documents.
The complaint argues that the letters mandating financial firms to discontinue digital asset activities are an attempt by the FDIC and financial regulators to force them to separate digital asset enterprises from the banking system.
History Associates says the issue is similar to a controversial program called “Operation Choke Point,” where regulators attempted to force banks to end connections with specific industries.
However, the FOIA requires that federal agencies provide any information requested unless it’s subject to certain immunities. They must also deliver non-exempt parts of documents, even if some areas are considered exempt.
Despite the requirement, the FDIC rejected the request to provide the “Pause Letters,” saying the exemptions are associated with examination materials and trade secrets without supplying precise reasons. Forcing the FDIC to release the Pause Letters will show the scope of the FDIC’s efforts against the digital asset industry.
The History Associates suit also seeks to hold the FDIC liable for their actions and guarantee clarity in future regulatory procedures.
Emma Rodriguez is the Proofreader at the Big Blind, with seven years of experience and five years in online gambling. She plays a crucial role in maintaining content quality by ensuring error-free, reader-friendly information about the gambling industry.
