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Coinbase Reveals FDIC Letters Showing 2022–2023 Crypto Banking Limits

Dec 6, 2024, 04:48 PM

Coinbase has released documents obtained through a lawsuit that reveal the U.S. Federal Deposit Insurance Corporation (FDIC) instructed banks to pause crypto-related activities in 2022 and 2023. These 'pause letters' suggest a systematic effort to limit the crypto industry's access to traditional banking services, a practice referred to as 'Operation Chokepoint 2.0' by industry participants. The FDIC cited regulatory uncertainty as the reason for its intervention. Lawmakers from both parties have expressed concerns and plan to investigate the government's actions. Coinbase's legal team, led by Paul Grewal, argues that these documents are evidence of a deliberate attempt to de-bank the crypto sector. The FDIC has been criticized for withholding information and redacting key details in the released documents.