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American cryptocurrency trading company Coinbase Global Inc. achieved a major victory in its ongoing Freedom of Information Act (FOIA) lawsuit against the Federal Deposit Insurance Corporation (FDIC). The court criticized the FDIC’s “fine regulations” in making this decision.
Development of the Case
According to the ruling shared by Coinbase’s Chief Legal Officer Paul Grewal, the judge stated that the FDIC’s regulations were made in bad faith. The judge emphasized that the market regulator cannot broadly regulate everything that is “not a preposition or article.”
“Judge Reyes concluded that the FDIC failed to comply with the directives provided. The court is concerned about the lack of good faith in the FDIC’s fine regulations.”
This new ruling, along with documents released by Coinbase last week, reveals the FDIC’s criticized role in Operation Chokepoint 2.0. This operation hindered financial institutions from serving cryptocurrency companies. In recent years, U.S.-based cryptocurrency firms faced struggles to maintain and transfer customer balances due to banks’ reluctance to serve them, influenced by the “showing a stick under the table” strategy of Operation Chokepoint 2.0 backed by the Biden administration.
Ongoing Process
The success Coinbase achieved against the FDIC in this lawsuit supports the company’s demands for transparency. Following the court’s ruling, the future progression of the case is eagerly anticipated. By sharing documents that disclose the FDIC’s role in Operation Chokepoint 2.0, Coinbase has reinforced its stance on transparency, marking an important step for the cryptocurrency sector.
This ruling raises questions about the FDIC’s attitude towards providing information while enhancing Coinbase’s legal success. The company aims to leverage this victory in other lawsuits as well.
In light of these developments, the interaction between the cryptocurrency sector and regulatory institutions is being closely monitored. Coinbase’s triumph may have a decisive impact on the industry’s future.
Lastly, Coinbase’s success could serve as an inspiration for other cryptocurrency companies. Steps taken towards transparency and the protection of legal rights may boost trust within the sector.
