Coinbase’s top lawyer, Paul Grewal, says newly revealed documents show the US government actively tried to squash the crypto industry.
Operation Chokepoint 2.0?
Grewal claims that court-ordered release of redacted letters from the Federal Deposit Insurance Corporation (FDIC) exposes a coordinated campaign. He previously alleged the FDIC pressured banks to cut off crypto services, calling it “Operation Chokepoint 2.0.” He says the FDIC’s continued attempts to hide information are suspicious. Grewal is calling for a congressional investigation.
The Evidence
According to Grewal and crypto investor Nic Carter, the unredacted letters reveal the FDIC sent at least 25 letters to banks between 2022 and 2023. These letters urged banks to stop or limit various crypto-related services, including:
- Buying and selling Bitcoin and Ethereum
- Private and public blockchain transactions
- Stablecoin issuance
- Holding crypto assets and NFTs
- Onboarding crypto firms as clients
- Bitcoin-backed lending
- Stablecoin depository services
- Bitcoin cashback debit cards
This, they argue, demonstrates a clear government effort to stifle crypto growth in the US. The fact that the FDIC seemingly found more letters after claiming full compliance with a previous court order only adds fuel to the fire.
