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U.S. Regulator Told Banks to Lay Off Crypto, Letters Obtained by Coinbase Reveal

Author: Content Editor
In 2022, the Federal Deposit Insurance Corp. (FDIC) reportedly paused or restricted crypto banking activity at numerous U.S. banks, according to uncovered communications obtained by Coinbase. Research firm History Associates had taken legal action against the FDIC and the Securities and Exchange Commission (SEC) to gain access to internal communications, a case which was finally won in June. The heavily-redacted documents revealed that the banking regulator had directed banks to halt their offering or consideration of products and services related to digital assets. Some activities were prevented from proceeding, while others were cautioned against further expansion until compliance demands were met. The FDIC's actions have been seen as evidence supporting claims that the crypto industry has faced difficulty in accessing banking services. Coinbase's Chief Legal Officer argued that the letters show a deliberate plan by the FDIC to exclude legal crypto businesses from the banking system, urging people to take note of this development. The next step for Coinbase will be requesting that the redacted sections be revealed, shedding light on the FDIC's reasoning behind its stance.

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