Coinbase has opposed a request from the Federal Deposit Insurance Corporation (FDIC) for a 16-day extension in a FOIA lawsuit concerning the agency's internal communications related to its alleged efforts to debank crypto firms. Coinbase's Chief Legal Officer, Paul Grewal, criticized the FDIC’s request as absurd, arguing that the agency is incorrectly interpreting the relevant deadlines. He noted that the FDIC has had ample time to prepare and that its extension request simply indicates an effort to evade legal obligations. The lawsuit challenges the FDIC's actions, suggesting it may have been involved in a covert campaign to isolate crypto firms from the U.S. financial system. This legal battle reflects ongoing scrutiny of federal regulators under the Biden administration regarding their treatment of the crypto industry, including allegations of pressuring banks to avoid serving digital asset companies. The FDIC has not yet responded to Coinbase's claims, while Congressional oversight is searching for potential misconduct in these practices.

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