Lawyers from Ripple and Coinbase have expressed concerns over the actions of the Federal Deposit Insurance Corporation (FDIC), aimed at curtailing activities related to cryptocurrencies.
Ripple Lawyer's Critique
Stuart Alderoty, Ripple's chief legal officer, opined that the FDIC sent intimidating letters to banks, urging them to stop all crypto-related operations swiftly. He compared the letters' intent to a directive to shut down all crypto services immediately.
Coinbase's Response to FDIC Actions
Paul Grewal, Coinbase's chief legal officer, spoke of a 'coordinated effort' to halt a range of crypto activities, including basic Bitcoin transactions. Coinbase secured a court order to access unredacted FDIC letters, corroborating their claims.
Historical Context and Implications
The recent FDIC actions are viewed as an extension of the 'Operation Choke Point' launched in 2013, aiming to restrict banking access for disfavored industries. Critics allege that a similar strategy targets the cryptocurrency industry. In 2021, the U.S. Office of the Comptroller of the Currency (OCC) began demanding pre-approval for banks' crypto activities, and the FDIC faced pressure in 2022.
Ripple and Coinbase lawyers continue to call for an investigation into the FDIC's tactics against the crypto industry, hoping for proactive measures from Congress.
