Coinbase, one of the largest cryptocurrency platforms in the world, has released documents that indicate targeted attempts by the Federal Deposit Insurance Corporation (FDIC) to restrict banks' access to bitcoin and other cryptocurrencies. These letters, called "suspension letters," contain recommendations for banks to refrain from offers related to crypto services, including simple bitcoin transactions.
Publication context
The publication of the letters was made possible by a Coinbase request filed in October 2024 under the Freedom of Information Act (FOIA). The request was made to clarify the assumptions that banks working with cryptocurrencies may be limited in placing cryptocurrency deposits at the level of 15%.
In response, the FDIC handed over the documents in December, but most of them were heavily redacted. A repeated request from Coinbase allowed us to obtain more complete versions, which were published on December 6, 2024.
The content of the letters
Coinbase general Counsel Paul Grewal said the letters demonstrate a coordinated effort to crack down on the crypto industry. The documents contain calls for banks to suspend or completely refrain from cryptocurrency transactions. Grewal noted:
"They demonstrate a coordinated effort to curb a wide range of cryptocurrency activities, from simple bitcoin transactions to more complex offerings."
During the second inquiry, the FDIC also found additional emails that Grewal said emphasized the need for transparency. Coinbase has called on Congress to begin hearings on the issue.
Allegations of Operation "Chokepoint 2.0"
Grewal also stated that these actions are part of the alleged operation "Chokepoint 2.0" aimed at hindering the development of the crypto industry in the United States. According to him, the administration of President Joe Biden is coordinating these efforts to limit the access of cryptocurrency companies to banking services.
FDIC Response
The FDIC has previously denied allegations of discrimination against cryptocurrency companies. In 2022, the agency published an internal memorandum with instructions for supervisors on how to interact with banks offering cryptocurrency services.
The FDIC document does not explicitly indicate the need to avoid working with cryptocurrencies, but a draft has been provided for responses to banks notifying them of their cryptocurrency initiatives. This draft partially echoes the letters published by Coinbase.
In December 2024, FDIC Chairman Martin Gruenberg stated that the agency does not prevent cryptocurrency companies from accessing banking services, but such banks should undergo stricter supervision.
The reaction of the crypto industry
Access to banking services remains a priority issue for crypto market players in the United States. President-elect Donald Trump, who has taken office, is expected to review the policy of interaction between banks and the crypto industry.
The publication of the FDIC letters increases pressure on the government and the banking sector, emphasizing the need for transparency and clear rules for the cryptocurrency market.
