A U.S. District Judge lifted the stay in Coinbase’s Freedom of Information Act (FOIA) lawsuit against the Federal Deposit Insurance Corporation (FDIC) without waiting for the agency’s response, according to Fox Business journalist Eleanor Terrett.
Terrett observed via X that Judge Reyes appeared unhappy with the situation. The judge’s decision resumes the legal process, allowing Coinbase to seek documents it claims the FDIC has withheld. The stay had paused the battle since February when the court hoped for resolution between the two parties without further proceedings.
Judge Reyes didn’t even let the @FDICgov respond before she agreed to lift the stay for @coinbase. You can tell she’s already mad. https://t.co/9NM8zssSMk
— Eleanor Terrett (@EleanorTerrett) April 3, 2025
Related: Coinbase Accuses FDIC of Secretly Stifling Crypto Banking
Lawsuit Resumes After FDIC Allegedly Halted Cooperation
Coinbase filed a motion in the D.C. District Court to resume its FOIA lawsuit, claiming the FDIC had ceased cooperation and was still withholding key information. The exchange noted that although cooperation improved under Acting Chairman Travis Hill, communication later broke down.
Judge Reyes, who placed the original stay to allow for voluntary resolution, responded by granting Coinbase’s motion. The judge acted before hearing from the FDIC, which, Terrett suggests, indicates the court’s growing concern over stalled transparency efforts.
Coinbase publicly stated its preference to resolve the matter outside the legal system but will continue seeking full disclosure through the courts if necessary.
FOIA Request Targets Alleged ‘Operation Choke Point 2.0’ Actions
The core of Coinbase’s FOIA request involves allegations linked to “Operation Choke Point 2.0.” This term refers to claims that certain federal agencies, including the FDIC, exerted informal pressure on banks to cut services to industries deemed high-risk, including crypto firms.
We’ve appreciated the increased cooperation we’ve seen from the new @FDICgov leadership, but they've stopped sharing all the required information. That's not good enough if we want to end OCP 2.0 and make sure that it doesn't happen again. https://t.co/Qb3KWb8bW4
— paulgrewal.eth (@iampaulgrewal) March 31, 2025
Related: Coinbase Alleges SEC and FDIC Stonewalling on Ethereum Stance in FOIA Lawsuit
Coinbase argues these actions resulted in unfair restrictions on financial access, putting digital asset businesses at a disadvantage. The company also asserts the FDIC’s approach may violate due process and First Amendment protections by targeting companies based on their sector.
The reinstated lawsuit seeks to compel the FDIC to produce internal records related to these alleged actions. Coinbase argues increased transparency is necessary to prevent future overreach and ensure regulatory accountability. The FDIC is expected to respond to the court within two weeks.
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