The Federal Deposit Insurance Corporation (FDIC) has issued warnings to banks about offering crypto services in more than 20 cases, as revealed by Coinbase. The chief legal officer of Coinbase, Paul Grewal, expressed concern over the FDIC’s attempts to limit financial access for American companies.
After making two Freedom of Information Act (FOIA) requests, Coinbase received 23 documents from the FDIC, outlining the warnings sent to banks regarding crypto services. These letters, dated between March and October 2022, advised banks to hold off on providing such services until further review due to concerns about compliance, safety, and consumer protection.
The FDIC’s actions have been linked to a program called Operation Chokepoint 2.0, according to Grewal. Coinbase plans to seek clarity from regulators through various means, including FOIA requests, to ensure transparency in government actions regarding crypto services.
In its shareholder letter for the third quarter of 2024, Coinbase mentioned its readiness to collaborate with either Vice President Kamala Harris or Republican nominee Donald Trump, as both candidates have shown support for crypto-friendly policies. This shift in political attitudes towards cryptocurrency has been noted by Coinbase as a positive development.
Overall, the FDIC’s warnings to banks regarding crypto services have raised concerns about regulatory limitations and transparency in government actions. As the crypto industry continues to evolve, it is essential for companies like Coinbase to advocate for clear and fair regulations to ensure the growth and innovation of the sector.
