Recent documents from Coinbase reveal that the Federal Deposit Insurance Corporation (FDIC) issued 'pause letters' advising banks to halt specific crypto services to better assess risks.
FDIC Letters: Suspending Crypto Services
Between 2022 and 2023, FDIC sent letters advising banks to halt services such as Bitcoin transactions through third-party partnerships. Paul Grewal, Coinbase's Chief Legal Officer, saw this as an effort to limit crypto initiatives.
Industry Reaction to FDIC Actions
FDIC's actions have created challenges for U.S. crypto companies in accessing banking services, likened to 'Operation Chokepoint' which pressured banks to sever industry ties. Industry leaders, including Ripple's Chief Legal Officer, have criticized FDIC's tactics.
Legal Measures and the Need for Transparency
Coinbase has pursued legal action to uncover FDIC practices, including deposit cap claims on crypto-friendly banks. Experts call for transparency and fair regulations to foster innovation in the crypto industry.
The need for fair regulation and transparency in the crypto sector is increasingly important to foster innovation and equal opportunities.
