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Home»Regulation»Coinbase FOIA Requests Find More Instances of US FDIC Asking Banks to ‘Pause’ Crypto Services
Coinbase FOIA Requests Find More Instances of US FDIC Asking Banks to 'Pause' Crypto Services
Regulation

Coinbase FOIA Requests Find More Instances of US FDIC Asking Banks to ‘Pause’ Crypto Services

2024-12-07No Comments2 Mins Read
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Major US crypto exchange Coinbase’s Freedom of Information Act (FOIA) requests reveal more cases where the US Federal Deposit Insurance Corporation (FDIC) has asked banks to freeze crypto services.

In a new thread on the social media platform

“The letters revealing Operation Chokepoint 2.0 were not just another crypto conspiracy theory. The FDIC still hides behind overly broad editorials. And they still haven’t produced more than a fraction of it.”

One example in the documents reveals FDIC Assistant Regional Director Joseph A. Meade asking an unnamed bank in Dallas, Texas, to pause its crypto operations in 2022 because the FDIC “has not determined what, if any, registrations will be required for a bank to undertake this type of activity.”

Caitlin Long, the founder and CEO of crypto-friendly bank Custodia Bank, told X that the FDIC’s actions were covert ways to legally cripple law-abiding crypto institutions.

“These ‘pause letters’ are dated March 11, 2022 – two years and nine months ago… these were not ‘pause letters’ because the pause was indefinite. These were in reality ‘cease and desist’ letters, cloaked in legalese, designed to crush law-abiding crypto.”

Last month, Grewal also uncovered 20 cases in which the FDIC ordered banks to cease crypto operations without any evidence that they had committed crimes.

Coinbase sued the FDIC and the U.S. Securities and Exchange Commission (SEC) earlier this year, claiming the agencies were trying to undermine the crypto industry.

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Banks Coinbase Crypto FDIC Find FOIA Instances Pause Requests Services
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