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Coinbase CLO shares data on crypto hedge funds debanking, demands for answers

Author: Content Editor
The Coinbase Chief Legal Officer, Paul Grewal, expressed concerns after an AIMA survey revealed that 75% of crypto hedge funds faced difficulties accessing basic banking services. This is in contrast to traditional alternative investment managers who did not report similar issues. The report from AIMA calls for action to address these challenges, stating that they hinder the development of the US economy and innovation. The survey results highlight that the problem of accessing banking services is unique to crypto hedge funds. AIMA proposes a collaborative effort between the new administration, banking leaders, and policymakers to find a solution. The article also discusses the history of Operation Choke Point, a program that aimed to deny banking services to fraudsters but was criticized for targeting political enemies. While the existence of Operation Choke Point 2.0 is not confirmed, leaked documents and cases suggest that a similar operation may be targeting cryptocurrency companies. The article suggests that the FDIC's actions may be a response to turbulent events in the crypto market, but notes that banks lack clear guidelines for determining risk when working with crypto clients. The lack of clarity and pressure on banks could hinder innovation in the US and make the country less attractive to cryptocurrency companies.

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