Coinbase's 23 FDIC Letters Reveal Directive to 'Pause All Crypto Activity,' Confirming 'Operation Chokepoint 2.0'

Dec 6, 2024, 04:51 PM

Coinbase has released 23 'pause letters' obtained through a lawsuit, revealing that the Federal Deposit Insurance Corporation (FDIC) instructed certain banks between 2022 and 2023 to "pause all crypto asset-related activity." Coinbase's Chief Legal Officer, Paul Grewal, asserts that these letters confirm a deliberate effort by U.S. regulators to de-bank crypto companies, referring to it as 'Operation Chokepoint 2.0.' The FDIC's actions have raised concerns about regulatory overreach and the suppression of the cryptocurrency industry in the United States. Industry figures, including Caitlin Long, have highlighted these revelations as evidence of a systematic attempt to restrict access to banking services for legal crypto businesses. The impact of these directives was seen in cases like Silvergate Bank, which was forced to shut down and liquidate after its crypto-related business was undermined.