As a seasoned crypto investor with over a decade of experience navigating the digital asset landscape, I find the recent revelations from Coinbase regarding the FDIC’s stance on cryptocurrency banking services concerning yet unsurprising. Having witnessed numerous regulatory hurdles and the ever-changing tides of government intervention in our industry, I am well aware that transparency is often in short supply when it comes to dealing with regulatory bodies.
According to their top lawyer, Coinbase, a digital currency exchange, has found approximately 20 instances where U.S. financial regulators have suggested American banks to avoid offering cryptocurrency-related banking services.
After submitting two Freedom of Information Act (FOIA) petitions to the Federal Deposit Insurance Corporation (FDIC), Coinbase is now awaiting disclosure of details regarding the ongoing regulatory scrutiny of cryptocurrencies in U.S. banks.
Public ‘deserves transparency,’ says Coinbase CLO
According to Paul Grewal, the Chief Legal Officer of Coinbase, as of November 1st’s post on Reddit, we have identified over 20 instances where the FDIC has advised banks to halt or abstain from initiating crypto-banking services.
Grewal stated that the public should receive openness instead of an agency operating hidden by the veil of bureaucracy.
In response to the FDIC’s letter descriptions presented in the November 1st court filing, Grewal stated that the content represents a regrettable demonstration of a government agency attempting to restrict financial opportunities for legitimate American businesses.
FDIC cast doubt over banks’ risk assessment
The court filing summarizes 23 documents detailing instances where the FDIC questioned banks’ risk assessments regarding crypto services, advising them to hold off on offering such services until a review is completed.
In the majority of instances reviewed, they were quite alike. However, one particular instance, as detailed in “Document 5,” is said to have involved the FDIC summoning a bank for an examination of their cryptocurrency-related services.
Even though the bank offered more details following the meeting, it’s claimed that the FDIC posed further queries and recommended the bank refrain from offering services to new customers until their review was concluded.
Simultaneously on October 30th, CryptoMoon stated that Coinbase plans to collaborate with whichever U.S. administration takes office, whether it’s the one led by Democratic Vice President Kamala Harris or Republican Donald Trump, in anticipation of the election scheduled for November 5th.
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2024-11-02 08:40