- Previously unredacted FDIC letters targeting crypto activities have surfaced.
- Paul Grewal calls for hearings regarding alleged overreach from the FDIC.
The Federal Deposit Insurance Corporation has released unredacted documents detailing its crypto industry “pause letters.”
Coinbase’s Chief Legal Officer Paul Grewal recently described the findings as evidence of a “shameful example” of regulatory overreach targeting lawful crypto firms.
The newly revealed letters, obtained through a court-ordered Freedom of Information Act request, show the FDIC repeatedly urging banks to suspend crypto-related services pending further regulatory reviews.
One letter states: “Until we complete our review, we request that the bank refrain from providing cryptocurrency service to its customers.”
The documents span activities ranging from basic Bitcoin transactions to more complex crypto offerings.
Grewal criticized the FDIC for what he called a pattern of concealment, noting that two additional letters were only discovered after the agency claimed it had already complied with an earlier court order.
“It’s hard to believe in their good faith when their sweater further unravels every time we pull on the thread,” Grewal said, calling for Congressional hearings into the matter.
The FDIC has defended its actions as routine oversight aimed at ensuring the “safety and soundness” of banking institutions and protecting consumers.
Critics, however, argue this amounts to a covert continuation of “Operation Chokepoint 2.0,” likening it to a prior initiative that restricted banking access for industries deemed high-risk.
Crypto market movers
- Bitcoin is up 1.8% over the past 24 hours to trade at $98,135.
- Ethereum is also up 4.6% over the same period to $3,595.
What we’re reading
- Do Kwon pleads not guilty to US charges with maximum penalty of 130 years in prison ― DL News
- BlackRock’s Bitcoin ETF Records Its Largest Outflow ― CoinDesk
- MicroStrategy expands ‘21/21 plan’ with $2 billion preferred stock offering for bitcoin purchases ― The Block
- Arbitrum’s $190 Million Gaming Catalyst Program Is Ready to Start Providing Grants — Unchained
- Unmasking Satoshi – Bitcoin’s creator drove numerous guesses in 2024 ― DL News
Kyle Baird is DL News’ Weekend Editor. Got a tip? Email at kbaird@dlnews.com.
