Coinbase has secured the release of more unredacted documents from the Federal Deposit Insurance Corporation after a legal battle over Freedom of Information Act requests.
The Federal Deposit Insurance Corporation (FDIC) has released two additional pages of documents that Coinbase has been trying to legally obtain for months.
documents, Referred to To "pause letters", appear Federal Deposit Insurance Corporation (FDIC). Advising banks to stop activities related to cryptocurrencies. The letters I suggest the agency Deliberately limiting the involvement of US banks in the cryptocurrency business in 2022.
Documents Shared Written by Paul Grewal, Chief Legal Officer at Coinbase, on X.
These actions, part of what many are calling “Operation Chokepoint 2.0,” highlight tensions between US regulators and the cryptocurrency industry. The term is inspired by the original “Operation Chuck Point,” an initiative launched by the US Department of Justice in 2013, targeting banks and payment processing companies that work with industries considered high-risk or odious, such as payday lenders and firearms sellers.
"Note that the FDIC magically found two additional pause letters in this search after previously saying it had complied with the previous court order. It's hard to believe their good faith when their jacket loosens further every time we pull the string."
FDIC non-compliance with Coinbase
On December 12, 2024, Judge Anna C. Reyes sued the FDIC for excessive redactions and failure to comply with prior court orders. It instructed the agency to make "more detailed revisions" and issue additional communications.
The FDIC later revealed two previously undisclosed letters today, raising questions about the agency's transparency.
Released documents show that banks were asked to temporarily halt all activities related to crypto assets, causing delays in the launch of cryptocurrency services while addressing unclear compliance requirements.
This development adds to the growing debate about regulatory clarity and the role of federal agencies in shaping the cryptocurrency landscape. With Donald Trump's presidential victory, many are hoping that the Federal Deposit Insurance Corporation (FDIC) will... second Change their stance on encryption.
“The new Congress should begin hearings on all of this without delay,” Grewal said.
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