Coinbase Unveils FDIC Files Exposing Crypto Banking Restrictions Under Court Order

• FDIC released unredacted files after a court order, exposing directives targeting crypto firms.
• Previously undisclosed FDIC letters revealed instructions to banks to halt services to cryptocurrency businesses.
• Industry leaders and lawmakers push for investigations into Operation Chokepoint’s regulatory impact on crypto operations.

Coinbase Global Inc., a major American cryptocurrency exchange, has obtained unredacted files from the Federal Deposit Insurance Commission (FDIC) as part of its ongoing investigation into Operation Chokepoint 2.0. These files, initially withheld by the FDIC, were released following a court order. The documents are now accessible to the public, marking a significant development in Coinbase’s Freedom of Information Act (FOIA) case.

Paul Grewal, Chief Legal Officer (CLO) of Coinbase, revealed on X that the unredacted documents indicate the FDIC’s involvement in a coordinated effort targeting cryptocurrency transactions. These include activities ranging from basic Bitcoin transfers to more intricate digital asset operations. Grewal emphasized that the documents expose how far-reaching this agenda was within the banking sector.

In December, the FDIC provided an initial batch of documents, but key details were redacted. Days later, a court ordered the release of the complete files, affirming the need for transparency. Following this mandate, the FDIC also disclosed two previously undisclosed letters instructing banks to halt services to cryptocurrency firms. Initially, the agency denied the existence of these communications.

The additional letters revealed by the FDIC provide further evidence of directives aimed at limiting banking services to crypto businesses. These findings align with broader claims that financial regulators imposed undue constraints on the crypto industry. The documents also illustrate the widespread nature of Operation Chokepoint 2.0’s influence, which extended across multiple banking institutions.

The release of these documents has intensified calls for a deeper investigation into Operation Chokepoint’s activities. Paul Grewal has joined other stakeholders in urging a thorough probe. Industry voices, including Riot Platforms Public Policy Executive Brian Morgenstern, have cited similar restrictive measures affecting Bitcoin miners.
With the incoming administration under Donald Trump, lawmakers and industry leaders are advocating for action. Crypto policy expert David Sacks and Representative French Hill have expressed support for uncovering the extent of these actions. Many see this as a critical moment to address regulatory overreach in the crypto sector.