- Coinbase received FDIC documents under the Freedom of Information Act.
- The files reveal actions to restrict services for crypto firms.
- Industry leaders worry that these moves may push companies overseas.
Coinbase recently gained access to Federal Deposit Insurance Corporation documents, marking a major development in its regulatory dispute. The American crypto exchange received these files under the Freedom of Information Act. Coinbase claims that the records show the FDIC’s attempts to limit crypto firms’ access to banking services in the U.S.
FDIC’s “Pause Letters” Allegedly Directed at Crypto Companies
The documents obtained through the FOIA reveal that the FDIC issued “pause letters” to banks. These letters advised banks to delay or halt services for crypto businesses. Coinbase claims that the FDIC cited risks tied to financial safety and potential consumer impacts.
Besides advising caution, the FDIC’s actions reportedly create barriers for legal crypto firms operating in the U.S. Coinbase argues that these “pause letters” have led to financial limits that stifle the growth of the sector. Chief Legal Officer Paul Grewal states that these measures restrict lawful crypto companies from accessing U.S. banking fully.
Coinbase’s Broader Legal Moves to Obtain Transparency
Coinbase’s recent FOIA filing is part of its broader legal efforts. In June, the exchange sued both the FDIC and SEC, claiming they pressured banks to cut ties with crypto firms. The lawsuit argues that both agencies lack transparency, making it hard for crypto businesses to operate in the U.S. financial system.
Moreover, Coinbase submitted new FOIA requests to further investigate limits on crypto asset holdings in banks. Through these requests, the company seeks regulatory clarity to create a transparent ecosystem for digital assets in the United States. Coinbase believes these filings highlight barriers facing crypto firms in securing essential financial services.
Are Regulators Repeating “Operation Chokepoint”?
The crypto industry worries that regulators are revisiting tactics from “Operation Chokepoint.” This earlier strategy limited financial access for industries seen as high-risk. Now, similar actions might restrict the growth of the crypto sector by reducing access to banking services.
Consequently, industry advocates warn these pressures could push U.S.-based crypto firms to move overseas. The Blockchain Association recently pointed out that increased costs result from SEC actions under Chair Gary Gensler. Many in the crypto sector fear that these regulatory moves might push the industry into a cold war in the U.S.
The post Coinbase Uncovers FDIC Efforts to Limit Crypto Banking Access appeared first on Crypto News Land.
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