Coinbase Chief Legal Officer Accuses U.S. FDIC of Taking Secret Action to Suppress Crypto Industry

BlockBeats news, on November 3, Coinbase Chief Legal Officer Paul Grewal accused the U.S. Federal Deposit Insurance Corporation (FDIC) of taking secret actions to suppress the encryption industry.

Grewal claimed that documents obtained through the Freedom of Information Act showed a series of so-called "suspension letters."

In these letters, the FDIC allegedly instructed banks to delay or stop providing services to encryption companies.

He described the letters as "a shameful example of U.S. government agencies trying to cut off financial access to law-abiding American companies," and pointed out that the FDIC was unfairly targeting legitimate encryption companies and limiting their access to banking services.

Documents shared by Coinbase show that FDIC officials urged banks to avoid launching or expanding encryption-related services due to concerns such as "safety and soundness" and potential consumer risks.

In each case, the FDIC asked the bank to wait until it completed further review — a process Coinbase believes creates unfair barriers for crypto companies. (DL News)