Paul Grewal, Coinbase’s Chief Legal Officer, stated that the information the company received from the FDIC regarding the stop letters sent to financial institutions within the scope of Operation Chokepoint 2.0 clarified the situation.
Coinbase CLO: FDIC Blocks Crypto Banking
Paul Grewal added that the FDIC started to share documents regarding the stop letters sent to financial institutions within the scope of Operation Chokepoint 2.0, in line with the ‘Freedom of Information Act’ (FOIA) request.
Paul Grewal: “Slowly but surely the situation is becoming clearer. After we filed the lawsuit, the FDIC began responding to our FOIA request regarding the cease-and-desist letters it sent to financial institutions as part of Operation Chokepoint 2.0. “The contents set a shameful example…” he said.
Grewal stated that the content of the letters points to a government agency aiming to prevent American companies that take legal action from accessing financing.
Coinbase Defys Regulators, Demands Clear Crypto Rules
Last week, Coinbase submitted a series of FOIA requests to the FDIC to address regulatory uncertainties. The move is seen as part of the company’s quest for clear guidance on what the US government wants regarding the regulation of digital assets.
The purpose of the request was to obtain documents relevant to the FDIC’s imposition of any restrictions on the amount of digital assets that American depository institutions can hold.
Clarifying Regulators’ Approach to Crypto
In June, Coinbase filed suit against the SEC and FDIC for the first time, forcing the release of documents related to their investigations into the cryptocurrency market. These lawsuits are seen as the next step in Coinbase’s fight with the SEC.
An additional complicating factor is the FDIC’s pressure on financial institutions to divest from crypto-related activities altogether, Grewal noted.
Coinbase Global Inc announced that the SEC continues its stance against application-based regulatory strategies and recently filed an Amicus Brief on behalf of the DeFi Education Fund and Beba.
These developments once again reveal how important regulatory transparency and clarity is in the cryptocurrency industry. These efforts of Coinbase can serve as an important example for other companies in the industry.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
