Through documents released by the Federal Deposit Insurance Corporation (FDIC), Coinbase learned that the agency had actively worked to prevent certain American banks from launching into cryptocurrencies. What is it about?
Coinbase General Counsel Exposes FDIC Anti-Crypto Practices
Last June, Coinbase filed a complaint against the Securities and Exchange Commission (SEC) and another against the Federal Deposit Insurance Corporation (FDIC). The subject of this legal action concerned blocks to requests for access to documents under the Freedom of Information Act (FOIA).
From, FDIC began granting Coinbase requests by providing some of the requested documents, as reported by Paul Grewal, the legal director of the cryptocurrency platform:
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
While the full letters have not yet been disclosed, Paul Grewal indicates that the information received by Coinbase is already sufficient to conclude that the FDIC put pressure on American banksso that they move away from cryptocurrencies:
So far, we've discovered more than 20 examples of the FDIC asking banks to “pause,” “refrain from providing,” or “not continue” to offer crypto banking services. The public deserves transparency, not an agency that works behind a bureaucratic curtain.
Looking more closely, we can see that these are documents dated between March 11 and October 21, 2022, where banking institutions inform, for example, of their willingness to provide crypto services. For most exchanges, the agency requests additional information from each bank to assess the risks faced by consumers and/or calls for “ suspend all activity related to crypto-assets “.
This way, we will be able to know more about the ins and outs of these discussions when the documents in question are fully published.
👉 Also in the news – Coinbase reveals rather disappointing financial results for the 3rd quarter of 2024
For his part, Coinbase stock gained 2.03% on Friday's sessionafter a fall of 12% on Thursday against a backdrop of quarterly results below expectations. The title trades at $182.88 per unit for a capitalization of $45.78 billion.
Coinbase: register on the most famous crypto exchange in the world
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Since 2021, I have devoted my free time to seriously educating myself on cryptocurrencies in order to acquire maximum knowledge and credibility. I often have the opportunity to conduct interviews with influential figures in the blockchain industry. I also conduct in-depth analyzes on Web3 themes to offer exclusive content to Cryptoast readers.
Vincent Maire
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