FDICs Suppression of Crypto Industry Exposed Coinbase Legal Team Criticizes Quite Shameful
Coinbase, a prominent U.S. exchange, has previously submitted two new Freedom of Information Act (FOIA) requests to the Federal Deposit Insurance Corporation (FDIC), seeking the disclosure of relevant documents regarding banks suppressing the cryptocurrency industry. Recently, the FDIC finally released the relevant documents on “suppressing the cryptocurrency industry,” sparking a series of doubts about government transparency among crypto industry players. Coinbase’s legal counsel, Paul Grewal, also criticized the matter on Twitter, calling it “quite shameful.”
The FOIA documents revealed that the government requested banks to “pause” cryptocurrency services
According to the recent “suppression letters” disclosed by the FDIC, from March to October 2022, the FDIC sent over 20 letters to multiple banks, requesting them to “pause,” “not provide,” or “discontinue” services related to cryptocurrency assets. These letters are seen as part of “Chokepoint 2.0” (referring to oppressive policies) aimed at pressuring crypto industry players and suppressing the development of the cryptocurrency industry. Grewal stated that these letters show the government’s covert efforts to weaken the financial connections between compliant crypto industry players and consumers.
FDIC documents on “suppressing the cryptocurrency industry”
Bureaucratic behind-the-scenes operations suppress industry development, Grewal criticized: quite shameful
Grewal expressed significant dissatisfaction with the situation. He stated that such “bureaucratic behind-the-scenes actions” severely harm the opportunities for law-abiding players to enter the market and hinder financial innovation. He further commented, “The public should receive transparent information, rather than seeing the government (FDIC) pulling tricks behind the scenes to restrict the development of the legal cryptocurrency industry, which is quite shameful.” Grewal also mentioned that although the complete letters have not been fully disclosed, based on the currently exposed content, it is evident that the FDIC requested banks to pause cryptocurrency-related plans and services pending review. He added that Coinbase and other crypto advocacy groups will continue to push for FOIA requests to disclose more relevant documents.
Coinbase’s legal counsel criticizes FDIC on Twitter: quite shameful!
(Coinbase submits FOIA requests to the FED and FDIC again, seeking an explanation on “bank cryptocurrency deposit limits”)
