FDIC (U.S. bank deposit insurer) to Pay Coinbase $188,440, Reform Freedom of Information Act Policies

The FDIC will settle Coinbase’s FOIA lawsuit by covering legal costs for its contractor, reviewing disclosure practices, and releasing letters that urged banks to limit crypto services.

Summary

The U.S. Federal Deposit Insurance Corporation and Coinbase reached a June 6 settlement in a FOIA lawsuit over withheld crypto-related disclosures. As part of the agreement, the FDIC will cover legal fees for History Associates, a contractor hired by Coinbase, review its information release procedures, and make public “pause letters” advising banks to restrict or halt cryptocurrency services. This resolution includes reforms to align FDIC’s disclosure practices with federal transparency laws.

Terms & Concepts
  • Freedom of Information Act (FOIA): A U.S. federal law that grants public access to government agency records, subject to specific exemptions.
  • Cryptocurrency: A digital asset secured by cryptography and recorded on a blockchain, enabling peer-to-peer value transfer.