Coinbase Finds FDIC Warns Banks Against Offering Crypto Services in Over 20 Cases
Coinbase chief legal officer Paul Grewal revealed that the crypto exchange has uncovered more than 20 cases where the Federal Deposit Insurance Corporation (FDIC) instructed banks to halt or restrict crypto-related banking services.
Grewal expressed his concerns in a post, stating, “In short, the contents are a shameful example of a government agency trying to cut off financial access to law-abiding American companies.”
The discovery came after the FDIC provided Coinbase with 23 documents in response to their Freedom of Information Act requests. These documents contained summaries of letters sent by the FDIC to banks regarding pausing crypto services.
The FDIC has not released the actual letters, but the summaries indicated that the agency was reviewing banks’ proposed crypto services for compliance with regulations, safety, and consumer protection. Grewal mentioned that these actions were related to Operation Chokepoint 2.0.
Despite the lack of transparency, Coinbase intends to seek clarity through FOIA requests and other means. Grewal emphasized the importance of transparency and criticized the agency for working “behind a bureaucratic curtain.”
In a recent shareholder letter, Coinbase stated its readiness to collaborate with any administration, highlighting the positive stance both Vice President Kamala Harris and Republican nominee Donald Trump have taken towards crypto. The company sees this as a significant shift in the political landscape compared to previous years.
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