Coinbase has released internal Federal Deposit Insurance Corporation (FDIC) communications indicating that the agency may have deliberately limited U.S. banks' involvement with cryptocurrency businesses in 2022. The documents, obtained through a legal challenge and made public on Friday, include letters where the FDIC reportedly instructed banks to "pause all crypto asset-related activity."
These directives allegedly caused delays or halted banks' plans to offer crypto services due to unclear compliance requirements. Coinbase argues that this reveals a coordinated effort to restrict banking access for legitimate crypto businesses, a practice some in the industry refer to as "Operation Chokepoint 2.0."
The strained relationship between crypto firms and U.S. banks has been an ongoing issue, with banks hesitant to engage due to regulatory ambiguity and potential risks. Without clear guidelines, many banks avoid the sector, creating hurdles for crypto businesses that rely on traditional banking services.
Coinbase's Chief Legal Officer, Paul Grewal, stated that the lack of formal crypto guidelines allows regulators to impose informal restrictions, effectively isolating the crypto industry from mainstream financial services. He urged for clearer policies to ensure that law-abiding American businesses can access banking services without undue government interference.
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