Coinbase, the major American cryptocurrency exchange, has made significant progress in its recent dispute with the Federal Deposit Insurance Commission (FDIC). The firm confirmed that the FDIC has started releasing information in response to Coinbase’s Freedom of Information Act (FOIA) request. This development comes months after Coinbase sought transparency regarding regulatory pressures on the cryptocurrency industry.
Paul Grewal, Chief Legal Officer at Coinbase, announced that the FDIC had begun to share requested documents. These include “pause letters” allegedly sent by the FDIC to banks advising them to cease financial services for crypto businesses. Coinbase has received 20 such letters, proving that FinCEN colludes with other financial institutions to turn banking facilities down to legal cryptocurrency companies. These guidelines, known to some as the second iteration of the now infamous “Operation Chokepoint 2.0,” says Coinbase, are designed to limit banking for the cryptocurrency industry significantly.
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Coinbase Seeks Regulatory Clarity in Cryptocurrency Industry
Coinbase’s push for transparency stems from a series of actions taken against it and other crypto companies by U.S. regulatory bodies. The firm contends that FDIC’s pause letters are, in effect, exclusionary of the banking support many digital asset firms depend on. This position has solidified Coinbase’s determination to fight for the now legal industry to obtain regulatory approval and take on federal agencies, which the company argues are overstepping their mandates.
This is not the first time Coinbase has confronted federal regulators. Coinbase also filed a lawsuit against the FDIC in June and the U.S. Securities and Exchange Commission (SEC). Coinbase allegations are that the agencies have been making financial bodies stop offering services to the companies dealing with virtual currencies. The firm’s ongoing efforts include obtaining regulatory documents that may reveal the FDIC and SEC’s specific stances on cryptocurrency operations.
Coinbase remains committed to challenging these regulatory pressures by continuing to push for transparency and clarity, it aims to bring about a more defined regulatory environment for the entire cryptocurrency industry.
Also Read: Coinbase CEO Advocates for SEC Reconciliation and Regulatory Clarity
