Coinbase, the cryptocurrency exchange, has identified “more than 20 instances” where U.S. regulators have advised domestic banks to avoid services related to cryptocurrency, as stated by the company’s chief legal officer.
This revelation follows Coinbase’s submission of two Freedom of Information Act (FOIA) requests directed at the Federal Deposit Insurance Corporation (FDIC)—the U.S. agency responsible for insuring bank deposits—seeking information about the ongoing crackdown on crypto-related banking activities.
Coinbase’s CLO Advocates for Transparency
In a post on X dated November 1, Coinbase’s chief legal officer, Paul Grewal, asserted, “We have uncovered over 20 cases where the FDIC instructed banks to ‘pause’ or ‘refrain from providing’ or ‘not proceed’ with crypto banking services.”
Grewal emphasized that the public “deserves transparency” instead of an agency operating behind a “bureaucratic curtain.” He criticized the letters submitted by the FDIC in the November 1 court filings, labeling them as “a disgraceful example of a government agency attempting to restrict financial access for law-abiding American businesses.”
FDIC Questions Banks’ Risk Evaluations
The court documents summarize 23 instances where the FDIC expressed skepticism over banks’ evaluations of risks associated with cryptocurrency services, urging them to hold off on these offerings until a thorough review could be completed.
Many of the cases shared similar themes. For instance, in “Document 5,” the FDIC convened a meeting with a bank to examine its cryptocurrency services closely.
Despite the bank providing additional documentation following the meeting, the FDIC purportedly raised further “questions” and advised, “Until such review is completed, the bank should not expand the service to additional customers.”
Additionally, on October 30, Cointelegraph reported that Coinbase is “ready to collaborate with whatever administration” assumes power in the U.S., whether Democratic candidate and current Vice President Kamala Harris or Republican Donald Trump emerges victorious in the upcoming election on November 5.