#FDIC Accused of Hiding Cryptocurrency Information#

The Federal Deposit Insurance Corporation (FDIC) has been accused of omitting multiple cryptocurrency-related "cease and desist letters" sent to banks in a Freedom of Information Act (FOIA) lawsuit supported by Coinbase. According to a report filed by History Associates in Washington, D.C. federal court on January 17, the FDIC “may have omitted other cease and desist letters” and plans to file new allegations in its lawsuit. There have been public reports alleging that the FDIC has “systematically thwarted FOIA requests,” resulting in the non-disclosure of at least 150 relevant documents. In its January 17 status report, the FDIC stated that it had complied with FOIA requirements, submitted all relevant documents, and conducted the necessary searches for correspondence shared with the Office of the Inspector General from March 2022 to May 2023. Coinbase Chief Legal Officer Paul Grewal accused the FDIC of playing “word games” after the agency stated it had only searched for cease and desist letters within a specific time period. The incident has raised questions about the FDIC’s transparency regarding cryptocurrency regulation and further heightened tensions between the cryptocurrency industry and regulators.