Coinbase Alleges FDIC Campaign to Undermine Crypto Services

Paul Grewal, Coinbase's Chief Legal Officer, claims newly unsealed documents expose deliberate efforts by the Federal Deposit Insurance Corporation (FDIC) to obstruct crypto industry activities in the U.S.

Grewal alleges that court-ordered unredactions reveal a coordinated strategy to limit services ranging from basic Bitcoin transactions to stablecoin issuance and blockchain-based payments.

Initially uncovered through Freedom of Information Act (FOIA) requests, the letters suggest the FDIC pressured banks to freeze or restrict crypto services. Grewal has described these efforts as part of “Operation Chokepoint 2.0,” asserting that the agency’s actions extend beyond simple oversight into active suppression of innovation.

Crypto advocate Nic Carter has highlighted the scope of the FDIC’s influence, stating the agency issued at least 25 letters between 2022 and 2023. These communications reportedly discouraged financial institutions from offering Bitcoin and Ethereum services, supporting stablecoins, or engaging with blockchain technology.

The revelations have prompted calls for Congressional hearings to investigate the FDIC’s actions, as critics argue such interference could stifle competition and innovation in the financial sector.