Coinbase Demands Transparency from FDIC in Escalating Legal Battle Over Crypto Banking Restrictions

Coinbase has escalated its legal confrontation with the Federal Deposit Insurance Corporation (FDIC), filing a motion to compel the disclosure of alleged 'pause letters' sent to banks regarding crypto-related services. The exchange seeks all Freedom of Information Act (FOIA) denial letters issued by the FDIC from 2020 to 2024, intensifying its push for transparency in what it perceives as regulatory overreach. This development marks a significant escalation in the ongoing tension between crypto firms and traditional financial regulators.

Coinbase Escalates Legal Battle with FDIC Over Crypto Disclosure

Coinbase has intensified its legal confrontation with the Federal Deposit Insurance Corporation, demanding transparency regarding alleged 'pause letters' sent to banks. These letters reportedly instructed financial institutions to halt crypto-related services. The exchange filed a motion to compel the FDIC to disclose all Freedom of Information Act denial letters issued from 2020 to 2024.

The FDIC initially classified the documents as confidential bank examination records, triggering a protracted legal battle. Coinbase asserts that the regulator's delayed response—requiring four court orders and six document productions—demonstrates a pattern of obstruction. 'The agency continues to stonewall our efforts,' said Paul Grewal, Coinbase's Chief Legal Officer, in a public statement.

The case highlights growing tensions between crypto firms and U.S. regulators. Coinbase seeks a 30(b)(6) deposition to scrutinize the FDIC's FOIA practices, alleging systemic noncompliance with transparency laws. The outcome could set a precedent for how financial watchdogs handle crypto-related disclosures.

XRP Surpasses Ethereum in Coinbase Trading Volume, Signaling Market Resurgence

XRP has overtaken ethereum in trading volume on Coinbase during the first half of 2025, marking a significant shift in trader preference. The exchange's latest SEC filing reveals XRP accounted for 16% of transaction revenue, edging out ETH's 15%. This resurgence follows Ripple's legal victory in 2023, which clarified XRP's non-security status when traded on exchanges.

Coinbase's renewed embrace of XRP—after delisting it during Ripple's SEC lawsuit—has fueled the asset's revival. The platform reported XRP generated 13% of Q2 revenue compared to ETH's 12%, with Bitwise's research head noting the dramatic reversal: "Last year XRP wasn't even broken out." Derivatives demand is accelerating the trend, with Coinbase noting 75% of global crypto trading occurs in futures and options markets.

US Banking Giants Accused of Undermining Crypto Platforms Through Fee Manipulation

Alex Rampell, General Partner at Andreessen Horowitz, has raised alarms about potential anti-competitive practices by major US banks against cryptocurrency platforms. JPMorgan and other institutions stand accused of artificially inflating transaction fees and restricting banking access to crypto services—a move that could significantly deter retail participation in digital asset markets.

The alleged strategy mirrors Operation Chokepoint, though now purportedly bank-led rather than government-driven. A $10 fee on a $100 transfer to platforms like Coinbase or Robinhood creates prohibitive friction for everyday users. This financial barrier could force consumers toward traditional banking products while stifling innovation in decentralized finance.

Rampell's warning suggests these measures represent a strategic play by established financial institutions to maintain dominance. "This isn't about revenue—it's about strangling competition," he asserts, noting that JPMorgan's $800 billion market position gives it substantial influence to set industry-wide precedents.

XRP Outperforms Ethereum in Coinbase Q2 Revenue as Analysts Eye $4 Breakout

Ripple's XRP has surpassed Ethereum in Coinbase's Q2 2025 revenue share, capturing 13% of transaction fees compared to ETH's 12%. The resurgence follows XRP's mid-2023 relisting and fading SEC litigation, with whales accumulating positions ahead of potential ETF speculation. Bitcoin remains dominant at 34% of platform revenue.

Analysts now project a path toward $4 for XRP, citing its 16% contribution to Coinbase's trading income in H1 2025. The payments-focused token faces emerging competition from an unnamed rival attracting whale interest, though XRP's centralized exchange volume continues to overshadow most DeFi-focused assets.