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Following months of authorized actions, American cryptocurrency exchange Coinbase has acquired additional unredacted documents from the Federal Deposit Insurance Corporation (FDIC).
JUST IN:
Coinbase Obtained Unredacted FDIC Documents Revealing A Coordinated Effort, From The Government Regulator, To Limit Crypto Related Activities Under “Operation Chokepoint 2.0”, Following A Court Order! https://t.co/xEnXyek84T pic.twitter.com/ZBairsdZPh
— Good Morning Crypto (@AbsGMCrypto) January 3, 2025
This release is part of the company’s ongoing inquiry into claims related to “Operation Chokepoint 2.0”. It also follows a legal dispute concerning Coinbase’s Freedom of Information Act (FOIA) requests.
Coinbase Reveals FDIC’s Crypto Skepticism: What’s in the ‘Pause Letters’?
The FDIC has made available two additional pages of previously withheld documents, referred to as “pause letters.”
These documents indicate that the FDIC advised banks to suspend activities involving cryptocurrencies.
The letters imply that U.S. banks were deliberately discouraged from engaging with crypto firms throughout 2022.
Coinbase Chief Legal Officer Paul Grewal announced the news on X, stating that the newly released files confirm coordinated efforts by the FDIC to restrict cryptocurrency-related activities.
According to Grewal, these efforts included stopping basic Bitcoin transactions and hindering more complex crypto services.
We finally obtained the unredacted OCP 2.0 letters from @FDICgov. It took a Court order but now you can read them for yourself below. They show a coordinated effort to stop all kinds of crypto activity — everything from basic BTC transactions to more complex options. 1/3
— paulgrewal.eth (@iampaulgrewal) January 3, 2025
He further criticized the FDIC, stating, “Notice that FDIC magically found TWO more pause letters in this search after claiming earlier that it had complied with a previous Court order. It’s hard to believe in their good faith when their sweater further unravels every time we pull on the thread.”
The unredacted documents follow a December release that heavily redacted information. Subsequently, a court ruling required the FDIC to provide clearer details.
The “pause letters” are regarded as part of what many in the crypto sector refer to as “Operation Chokepoint 2.0.”
This term draws parallels to the original “Operation Choke Point,” a 2013 U.S. Department of Justice initiative targeting banks and payment processors associated with high-risk or controversial sectors.
These sectors included payday lenders and firearm dealers.
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The released documents reveal that banks were instructed to pause all activities related to crypto assets.
This directive resulted in delays in launching crypto services and increased uncertainty regarding compliance requirements.
Crypto Advocates Pin Hopes on Trump for Regulatory Relief in 2025
Recent developments have heightened calls for a thorough investigation into “Operation Chokepoint 2.0.” Coinbase’s legal chief, Paul Grewal, along with industry leaders, has urged Congress to take action.
Grewal stressed the urgency, stating, “The new Congress should initiate hearings on all this at once.”
Lawmakers, including Representative French Hill and crypto advocate David Sacks, have expressed support for examining regulatory practices.
The crypto industry now anticipates a more crypto-friendly approach from Donald Trump’s forthcoming administration.
On December 13, 2024, a federal judge criticized the FDIC for excessive redactions in crypto “pause letters” sent to banks following a Coinbase-supported FOIA lawsuit.
JUST IN: Judge Reyes ruled that FDIC did not comply with what it was ordered to do. “The Court is concerned with what appears to be FDIC’s lack of good-faith effort in making nuanced redactions. Defendant cannot simply blanket redact everything that isn’t an article or preposition.” 1/3 https://t.co/AX5HCKjrij
— paulgrewal.eth (@iampaulgrewal) December 12, 2024
Judge Ana Reyes expressed concern over the FDIC’s “lack of good-faith effort” and instructed the agency to provide clearer redactions by January 3.
The redacted letters indicated that the FDIC had directed 23 banks to cease or limit crypto-related activities.
In the tweet, Grewal contended that these actions support allegations that the Biden administration targeted the crypto industry.
He questioned the FDIC’s extensive redactions as evidence of deeper issues, asking, “What’s [the FDIC] working so hard to conceal?”
Trump’s transition team is reportedly considering reforms to banking agencies, including the FDIC, which could indicate regulatory changes ahead.
The post Coinbase Secures FDIC Unredacted Documents in Operation Chokepoint 2.0 Probe appeared first on Cryptonews.
