US FDIC loses lawsuit over refusal to release crypto 'pause letters'

The U.S. Federal Deposit Insurance Corporation (FDIC) has effectively lost a lawsuit over its refusal to release "pause letters" that allegedly pressured banks to halt services for cryptocurrency firms, Decrypt reported. The banking regulator agreed to pay all legal costs for the plaintiff, History Associates Inc., and to modify some of its Freedom of Information Act (FOIA) operating practices. History Associates is said to have filed the request on behalf of Coinbase. The lawsuit is linked to the alleged "debanking" of the crypto industry, a practice dubbed "Operation Choke Point 2.0," in which government agencies are suspected of indirectly pressuring crypto companies by limiting their access to banking.