According to newly unredacted correspondences between the Federal Deposit Insurance Corporation (FDIC) and member banks, it has been revealed that the FDIC is opposing the use of public blockchains by banks. The letters, obtained by Coinbase through a Freedom of Information Act request, show that the FDIC instructed a bank planning to roll out a "Bank Digital Deposit" program on a public blockchain to switch to a private, permissioned network instead. The FDIC also ordered member banks to pause all crypto asset-related activity, including buying and selling Bitcoin. Coinbase's Chief Legal Officer suggests that these actions are part of a wider effort by the Biden administration to restrict crypto activity, which he calls "Operation Chokepoint 2.0."



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