Internal Federal Deposit Insurance Corporation (FDIC) documents released by Coinbase show that the US government is intentionally limiting banks’ involvement with crypto businesses in 2022. The documents reveal communications between the FDIC and banks asking them to stop cryptocurrency-related activities.
Document Contents
The document contains letters instructing banks to stop all cryptocurrency-related activities. "We respectfully request you to stop all activities related to crypto assets," the document reads. This has caused banks to delay or stop their plans to offer crypto services.
Industry Reaction
Coinbase claims that these communications show a coordinated effort to restrict banking access for legitimate crypto businesses. The practice has been dubbed “Operation Chokepoint 2.0” by some in the industry. Coinbase executives argue that the lack of formal crypto guidelines allows regulators to impose informal restrictions.
Impact
Limited banking involvement has created significant barriers for crypto businesses that rely on traditional banking. Without clear regulations, many banks are avoiding the sector altogether. This has exacerbated the fragmented relationship between crypto and banking.
Source
FDIC internal documents released by Coinbase
CoinDesk News
Komentar Paul Grewal, CLO Coinbase
