Crypto exchange Coinbase has filed a cross-motion in its case against the Federal Deposit Insurance Corporation (FDIC), arguing for the release of "pause letters" sent to financial institutions. The company claims the FDIC's approach is flawed and seeks transparency in regulatory guidance.

The lawsuit aims to clear obstacles for pro-industry regulations, with Coinbase asserting its right to access the letters under the Freedom of Information Act (FOIA). The FDIC has denied Coinbase's requests, citing exemptions under the act.

Coinbase's Chief Legal Officer, Paul Grewal, emphasized the public's entitlement to the letters, stating that the FDIC's actions were intended to stifle the crypto market rather than regulate it. The exchange argues that even if parts of the letters are exempt, the FDIC must produce "reasonably segregable" non-exempt portions.

This development follows the FDIC's issuance of pause letters to financial institutions in 2023, limiting crypto activities. Coinbase seeks to uncover the contents of these letters, which have been withheld by the FDIC."