- Coinbase urges court to lift FOIA lawsuit stay as FDIC withholds key documents despite pledges for transparency.
- South Carolina dismisses its case against Coinbase’s staking services, marking another legal win for the exchange.
- Eight states still pursue enforcement actions against Coinbase, shaping the future of crypto regulations in the U.S.
According to Eleanor Terrett, Coinbase is urging the D.C. District Court to lift the litigation stay in its FOIA lawsuit against the FDIC. The exchange asserts that the agency continues to withhold crucial documents, hindering transparency efforts. Judge Reyes previously paused proceedings in February following the appointment of FDIC Acting Chairman Travis Hill. Hill had pledged to enhance transparency beyond FOIA requirements. However, Coinbase now contends that the FDIC has halted information-sharing efforts, prompting the renewed legal push.
FDIC’s Lack of Cooperation Spurs Legal Action
The FDIC’s position has angered Coinbase’s Chief Legal Officer, Paul Grewal. He underlined that although the exchange valued the first cooperation, the agency has fallen short of transparency standards. Grewal also reiterated Coinbase’s dedication to making sure the public gets the information it is entitled to. As a result, the business has made the decision to ask the court to step in once more. It is anticipated that the FDIC will reply in two weeks.
Besides the FOIA lawsuit, Coinbase recently secured a legal victory as South Carolina dismissed its case against the exchange’s staking services. South Carolina joins Vermont in dropping allegations that Coinbase offered unregistered securities. The lawsuit’s dismissal, filed jointly with the South Carolina Attorney General’s securities division, marks another positive step for Coinbase.
Widespread Legal Challenges Against Coinbase
South Carolina and Vermont were among ten states that sued Coinbase on June 6, 2023, targeting its staking services. The Securities and Exchange Commission (SEC) had also filed a lawsuit against the exchange the same day. However, the SEC officially dismissed its case on February 27, 2025.
Enforcement actions against Coinbase are also pending in eight additional states: Alabama, California, Illinois, Kentucky, Maryland, New Jersey, Washington, and Wisconsin. The rulings in those cases may set important precedents for U.S. crypto regulations. Additionally, Coinbase’s strong legal position shows how passionate it is to oppose what it views as unnecessary regulatory actions.
