- Coinbase reveals FDIC’s advisories against banks offering crypto services.
- Legal actions highlight demand for transparency in cryptocurrency regulation.
Coinbase has revealed troubling findings about the Federal Deposit Insurance Corporation (FDIC), uncovering over 20 instances where the regulator advised banks to avoid providing crypto-related services. This information emerged following the exchange’s recent Freedom of Information Act (FOIA) requests aimed at shedding light on the ongoing governmental crackdown on cryptocurrencies.
In a statement on November 1, Coinbase’s Chief Legal Officer, Paul Grewal, expressed concern over the FDIC’s actions, which he described as attempts to restrict financial access for law-abiding businesses. The documents submitted to the court illustrate the FDIC questioning banks’ risk assessments concerning cryptocurrency services. It often advises them to “pause” or “refrain” from offering such services until they conduct further reviews.
Slowly but surely, the picture is becoming clear. After we sued, @FDICgov finally started giving us information related to our FOIA request about the pause letters it sent to financial institutions as part of Operation Chokepoint 2.0. In short, the contents are a shameful example…
— paulgrewal.eth (@iampaulgrewal) November 1, 2024
Moreover, Grewal highlighted the lack of transparency in the FDIC’s operations. He emphasized that the agency operates behind a “bureaucratic curtain” instead of engaging in open discussions. This pattern of behavior raises questions about regulatory fairness and the implications for the broader crypto industry.
Coinbase Against SEC
Coinbase’s legal battles are not limited to the FDIC; the company has also filed lawsuits against the U.S. Securities and Exchange Commission (SEC) seeking clarity on regulatory expectations. As the cryptocurrency sector faces increasing scrutiny, Coinbase’s efforts highlight a growing demand for clear and consistent regulatory guidelines. It could foster innovation while ensuring compliance.
With the 2024 U.S. presidential election approaching, Coinbase is prepared to collaborate with either major party, advocating for a more transparent regulatory environment that supports the burgeoning crypto market.
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