History Associates has allied with Coinbase in a significant legal confrontation against the United States Federal Deposit Insurance Corporation (FDIC). The lawsuit aims to compel the FDIC to comply with a Freedom of Information Act (FOIA) request and disclose critical records that Coinbase believes are being unjustly withheld.

On June 27, a legal document was filed stating that the suit targets the FDIC's refusal to release documents known as “pause letters.” These letters, allegedly sent by the agency’s inspector general, instructed financial institutions to halt cryptocurrency-related activities. Coinbase had enlisted History Associates Incorporated to submit a FOIA request to obtain these records, which was subsequently denied. This denial has now led History Associates to take legal action in an attempt to force the FDIC to reveal the requested documents.

The lawsuit claims that the pause letters are part of a broader strategy by the FDIC and other financial regulators to coerce financial institutions into distancing themselves from digital asset businesses. This tactic is reminiscent of the controversial “Operation Choke Point,” where financial regulators pressured banks to cut ties with certain industries, such as payday lenders, through similar means.

According to the FOIA, federal agencies are required to release requested information unless it falls under specific exemptions. Even if parts of the records are exempt, agencies must provide non-exempt portions. Despite this mandate, the FDIC refused to release the pause letters, citing exemptions related to trade secrets and examination materials without offering detailed justification.

The primary objective of the lawsuit is to force the FDIC to release the pause letters and other related documents, shedding light on the FDIC’s actions against the digital asset industry. History Associates seeks to ensure that the FDIC and other regulatory bodies are held accountable and maintain transparency in their regulatory practices.

This legal battle is part of a larger trend of regulatory scrutiny facing the cryptocurrency industry. Coinbase is also embroiled in a separate legal dispute with the U.S. Securities and Exchange Commission (SEC), which has accused Coinbase of operating an illegal exchange trading unregistered securities. Despite these challenges, litigation analyst Elliott Stein has suggested that Coinbase has a strong chance of prevailing against the SEC.

As the case unfolds, the outcome could have significant implications for the transparency and regulatory approach of U.S. financial agencies towards the burgeoning digital asset sector.