Paul Grewal, the chief legal officer at Coinbase, shared documents that revealed how the Federal Deposit Insurance Corporation (FDIC), urged banks not to only stop or avoid crypto-related offerings but also Bitcoin (BTC) simple services.
Letters are versions that have not been redacted Share this article Grewal, on 6 December 2024. The group was dubbed “pause letters”They repeatedly advise against using crypto-services.
Grewal is a stated name.
“They show a coordinated effort to stop a wide variety of crypto activity — everything from basic BTC transactions to more complex offerings.”
These letters result from Coinbase’s Freedom of Information Act (FOIA) request filed on Oct. 18, seeking clarity on an alleged 15% deposit cap imposed on crypto-friendly banks.
The documents had been heavily redacted by the FDIC, even though they complied in December 2024. Coinbase requested a version with more accessible portions.
Grewal stated that FDIC discovered two other letters within this request. They claim that they reveal new information when they feel pressured to provide clarity, and urge Congress launch hearings. “without delay.”
He had previously said that the letters showed the importance of Operation Chokepoint 2, an alleged attempt by President Joe Biden’s administration to limit the US Crypto industry growth by limiting the access to banking services.
FDIC Responses
In response to this, the FDIC has published an internal memo from 2022 by its Division of Risk Management Supervision that outlines how supervisors are supposed to approach banks who plan on offering crypto services.
Despite Grewal’s letters revealing that the FDIC urged banks to avoid foraying into crypto, the FDIC recommendations do not explicitly tell its supervisors this.
Moreover, the FDIC’s document also contains a draft that supervisors can use to reply to banks notifying them of their engagement with crypto. This draft is very similar to the letter Grewal provided.
As Reuters reported in December 2024, FDIC Chairman Martin Gruenberg stated that the agency is not hindering crypto firms’ access to banking services. But banks that are engaging in crypto may be a good thing. “subject to supervisory attention.”
The crypto industry in the US is prioritizing access to banking and expressing hope for President-elect Trump The matter will be addressed His first day of office.
Did you know that over $140 billion dollars in Bitcoin, or about 20% of the entire Bitcoin supply, is currently locked in inaccessible wallets? Or maybe you have lost access to your Bitcoin wallet? Don’t let those funds remain out of reach! AI Seed Phrase Finder is here to help you regain access effortlessly. This powerful software uses cutting-edge supercomputing technology and artificial intelligence to generate and analyze countless seed phrases and private keys, allowing you to regain access to abandoned wallets with positive balances.
