Coinbase lawyer reveals fresh evidence of FDIC crypto industry ‘pause letters’

5 days ago 6

Previously unredacted FDIC letters targeting crypto activities person surfaced.
Paul Grewal calls for hearings regarding alleged overreach from the FDIC.

The Federal Deposit Insurance Corporation has released unredacted documents detailing its crypto manufacture “pause letters.”

Coinbase’s Chief Legal Officer Paul Grewal precocious described the findings arsenic grounds of a “shameful example” of regulatory overreach targeting lawful crypto firms.

The recently revealed letters, obtained done a court-ordered Freedom of Information Act request, amusement the FDIC repeatedly urging banks to suspend crypto-related services pending further regulatory reviews.

One missive states: “Until we implicit our review, we petition that the slope refrain from providing cryptocurrency work to its customers.”

The documents span activities ranging from basal Bitcoin transactions to much analyzable crypto offerings.

Grewal criticized the FDIC for what helium called a signifier of concealment, noting that 2 further letters were lone discovered aft the bureau claimed it had already complied with an earlier tribunal order.

“It’s hard to judge successful their bully religion erstwhile their sweater further unravels each clip we propulsion connected the thread,” Grewal said, calling for Congressional hearings into the matter.

The FDIC has defended its actions arsenic regular oversight aimed astatine ensuring the “safety and soundness” of banking institutions and protecting consumers.

Critics, however, reason this amounts to a covert continuation of “Operation Chokepoint 2.0,” likening it to a anterior inaugural that restricted banking entree for industries deemed high-risk.