Paul Grewal, Chief Legal Officer at Coinbase (NASDAQ:COIN), has taken to X to air his grievance with the ongoing US Federal Government attempting to impede the development of digital asset firms. Commenting on their FOIA [Freedom of Information Act] request, Grewal says that the FDIC sent pause letters to “financial institutions as part of Operation Chokepoint 2.0.”
“In short, the contents are a shameful example of a government agency trying to cut off financial access to law-abiding American companies.”
Grewal reports that they have discovered more than 20 examples of the FDIC directing banks to refrain from offering crypto banking services. Grewal states:
“The public deserves transparency, not an agency that’s working behind a bureaucratic curtain … We don’t have the full letters yet, but what we’ve seen so far speaks volumes. Take a look for yourself. In the meantime, we’ll keep pushing to get clarity from our regulators through FOIA requests and any other means necessary.”
Grewal has shared a link to examples of the chilling letters that are available here.
CI received a comment on the FDIC anti-crypto action. Seamus Rocca, Chief Executive Officer of Xapo Bank, stated:
“At Xapo, we have always actively looked towards regulation because we believe in empowering our customers with the knowledge and tools they need to make informed financial decisions. Greater clarity and transparency from regulators will benefit not only the crypto industry but also allow individuals and increasingly businesses, to make informed decisions on their investments. There is a world of difference between Bitcoin and Bored Ape NFT despite them both being labelled “crypto”. We believe a clear and predictable regulatory landscape will foster trust and innovation, enabling companies like ours to continue building products and services that promote financial freedom and security for all.”
Impeding crypto activity has largely taken place during the Biden Administration which has been anti-digital asset innovation. Many or most crypto related firms are supporting former President Donald Trump for President due to the administrations anti-crypto policies.
In record time, the judge in our @FDICgov FOIA case has ordered the agency to produce the Operation Chokepoint 2.0 pause letters. We appreciate the Court’s consideration. Some much needed sunlight is on its way. pic.twitter.com/E2PHjVuHHg
— paulgrewal.eth (@iampaulgrewal) November 4, 2024
