#FDIC Accused of Omitting Cease and Desist Letters#

The Federal Deposit Insurance Corporation (FDIC) has been accused of omitting multiple "cease and desist letters" related to cryptocurrency that were sent to banks in a Freedom of Information Act (FOIA) lawsuit supported by Coinbase. According to a report filed by History Associates with the U.S. District Court for the District of Columbia on January 17, the FDIC “may have missed other cease and desist letters” and plans to file new accusations in its lawsuit. Public reports allege that the FDIC “systematically obstructed FOIA requests,” resulting in the withholding of at least 150 relevant documents. The FDIC, in its January 17 status report, stated that the company has complied with FOIA requirements, submitted all relevant documents, and conducted necessary searches for letters shared with the Office of Inspector General between March 2022 and May 2023. Coinbase Chief Legal Officer Paul Grewal accused the FDIC of playing "word games" after the agency stated that it only searched for cease and desist letters within a specific time frame. This incident has raised questions about the FDIC's transparency and integrity in handling matters related to cryptocurrencies, and highlights the challenges regulators face when confronting emerging technologies.