Coinbase Alleges the FDIC Is Running Operation Chokepoint 2.0 to Stifle Crypto Adoption
- Susan SarandonOriginal
- 2024-11-04 04:24:09879browse
Coinbase chief legal officer Paul Grewal said that the crypto exchange has discovered over 20 instances where the Federal Deposit Insurance Corporation (FDIC)
Coinbase has discovered over 20 instances where the Federal Deposit Insurance Corporation (FDIC) asked banks to “pause” or “refrain from providing” or “not proceed” with crypto-related banking services, according to a recent X post by Coinbase's chief legal officer.
Coinbase filed two Freedom of Information Act (FOIA) requests with the FDIC to gain access to letters sent by the agency to banks regarding pausing crypto services. While the FDIC is yet to release the actual letters, Coinbase received 23 documents with condensed summaries of the letters.
The letters, addressed to bank presidents and boards of directors and dated between March and October 2022, come as the FDIC reviews the banks' proposed crypto services, advising them to hold off on providing such services until the review is complete. In most cases, the FDIC expressed concerns regarding the “bank’s legal analysis, assessment of compliance with FDIC regulations, safety and soundness, and consumer protection.”
Coinbase's chief legal officer highlighted the letters as part of Operation Chokepoint 2.0 in his post. He further stated that Coinbase will continue to pursue clarity from regulators through FOIA requests and any other necessary means, emphasizing that the public deserves transparency.
Coinbase also noted in its shareholder letter for the third quarter of 2024 that both presidential candidates—Vice President Kamala Harris and Republican nominee Donald Trump—have adopted crypto-friendly stances, a shift from previous years.
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