Coinbase (COIN) Is Done Playing Nice. The Crypto Exchange Has Gone After the FDIC

input: Coinbase (COIN) is done playing nice. The crypto exchange has gone after the FDIC for what it calls “absurd” delay tactics

Coinbase (NASDAQ:COIN) is done playing nice. The crypto exchange has gone after the FDIC for what it calls “absurd” delay tactics in a lawsuit over public records tied to the alleged covert debanking of crypto firms. And it’s not just about documents—it’s about what those documents may reveal about how deeply U.S. regulators tried to choke off the crypto industry behind closed doors.

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Coinbase is battling the FDIC in court over Key Records

On Thursday, Coinbase is set to appear in court to oppose the FDIC’s request for an additional 16 days to respond to a lawsuit filed by Coinbase under the Freedom of Information Act.

Coinbase argues that the agency has already had ample time to prepare and is now trying to stall.

Chief Legal Officer Paul Grewal didn’t mince words. “As laid out in our response, this is absurd,” Grewal said in a post on X.

Grewal noted that while short deadline extensions are common in litigation, this particular 13-page request was just to decide if the agency would need even more time later.

Coinbase believes the FDIC is trying to avoid accountability. “The agency’s interpretation of the default deadline is legally incorrect,” Coinbase wrote, calling the request “unwarranted” and unsupported by “sound reason.”

Coinbase is also countering an amicus brief filed by the Chamber of Commerce in support of the FDIC.

Allegations of Quiet Crackdown Gain Traction

This legal battle is part of a broader—and growing—storm around what many are calling “Operation Chokepoint 2.0.” Coinbase, along with other industry figures, believes federal agencies pressured banks to drop crypto clients without formal rulemaking.

In February, the FDIC released nearly 800 pages of internal documents. According to Decrypt, these documents show banks were warned about offering services to crypto firms, citing “reputation risk”—even in the absence of actual safety concerns.

Coinbase CEO Brian Armstrong has called the alleged campaign “one of the most unethical and un-American things that happened in the Biden administration.”

Wall Street Starts to Wake Up to Coinbase’s Real Value

Despite the regulatory tension, at least one analyst thinks the market is missing something.

This week, Cantor Fitzgerald initiated coverage of Coinbase stock (COIN) with an Overweight rating and a price target of $245.

According to the firm, Wall Street has overlooked how Coinbase’s stablecoin partnership with Circle and its Ethereum-based network are transforming it from a simple trading app into a vital backbone of crypto infrastructure.

That backbone is also making money. According to Circle’s recent IPO filing, Coinbase takes 50% of Circle’s residual revenue generated from the reserves backing its U.S. dollar-pegged USDC stablecoin.

Congress Digs Into Federal Crypto Clampdown

Lawmakers aren’t sitting still either. The House Oversight Committee has launched a probe into whether federal regulators crossed the line. They’ve reached out to Coinbase, a16z, and other industry players to dig deeper into whether lawful businesses were unfairly debanked.

For now, the FDIC may be buying time. But Coinbase isn’t backing off. And if more documents surface, the real story of how Washington dealt with crypto might just be getting started.

Is COIN Stock Worth Buying?

Analysts remain cautiously optimistic about COIN stock, with a Moderate Buy consensus rating based on 12 Buys and nine Holds.

Over the past year, COIN has decreased by more than 35%, and the average COIN price target of $296.35 implies an upside potential of 74.7% from current levels.

See more COIN analyst ratings