Coinbase Chief Legal Officer Paul Grewal has shed light on the Federal Deposit Insurance Corporation’s (FDIC) stance toward crypto banking, suggesting regulatory inconsistencies. Grewal recently shared that Coinbase’s Freedom of Information Act (FOIA) request is beginning to reveal the FDIC’s issuance of “cease letters” to financial institutions as part of Operation Chokepoint 2.0.
FDIC Accused of Stifling Crypto Banking
According to Grewal, the FDIC’s response to Coinbase’s FOIA request is gradually providing clarity. “Step by step, we are uncovering a troubling trend,” Grewal stated. After filing a lawsuit, the FDIC began sharing documents that suggest U.S. regulatory bodies may be intentionally hindering legal American companies’ access to funding.
Coinbase Pushes for Clear Crypto Regulations
In recent weeks, Coinbase has filed additional FOIA requests to the FDIC, aiming to resolve ongoing regulatory uncertainty surrounding digital assets. This effort is part of the company’s push for clear guidance on digital asset regulations within the U.S. government. Specifically, Coinbase is seeking documents related to any restrictions on the amount of digital assets that American deposit institutions may hold.
Shedding Light on Regulatory Actions Toward Crypto
In June, Coinbase launched its first legal challenge against the SEC and FDIC, demanding transparency in their investigations into the crypto market. This legal action marks a key step in Coinbase’s ongoing battle with the SEC. Grewal noted that the FDIC’s pressure on financial institutions to disengage from crypto activities adds a layer of complexity to the issue.
Coinbase recently filed an Amicus Brief on behalf of the DeFi Education Fund and Beba, reinforcing its stance against the SEC’s enforcement-centric approach to crypto regulation. These developments underscore the critical need for regulatory clarity and transparency in the crypto industry. Coinbase’s efforts could serve as a significant example for other companies navigating the complex regulatory landscape.
Coinbase, FDIC, crypto banking, Paul Grewal, FOIA
