Coinbase Chief Legal Officer Paul Grewal says unredacted letters show that the Federal Deposit Insurance Agency (FDIC) tried to sabotage a wide variety of activities in the crypto industry.
Grewal previously said that Coinbase’s Freedom of Information Act (FOIA) calls for uncovered instances where the FDIC asked banks to freeze crypto services
Grewal said at the time:
“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.”
Grewal is now saying on the social media platform
“We have finally received the unredacted OCP 2.0 letters [the FDIC]. It took a court order, but you can read them for yourself now… They show a coordinated effort to stop a wide range of crypto activity – everything from simple BTC transactions to more complex offerings.
Note that the FDIC magically found TWO more pause letters in this search after previously saying it had complied with a previous court order. It’s hard to believe in their good faith when their sweater continues to unravel every time we pull the thread. The new Congress should hold hearings on all of this without delay.”
According to investor and crypto advocate Nic Carter, the unredacted letters prove that the FDIC has pressured dozens of financial institutions to suspend or curtail services involving Bitcoin (BTC) and other crypto assets.
“In summary, we have now recorded that between 2022 and 2023, the FDIC sent at least 25 letters asking banks to indefinitely pause or curtail:
– Bitcoin and Ethereum buy/sell products for bank customers
– private blockchain settlement networks
– public blockchain settlement for bank transfers
– permitted issuance of stablecoins
– the holding of crypto assets and NFTs by banks
– onboarding of ‘ecosystem’ companies as customers (letter 16)
– Bitcoin-backed loans
– offering custody services for stablecoins
– issuing debit cards with Bitcoin cashback.”
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