Paul Grewal Calls for Congress to Investigate Alleged Anti-Crypto Practices

• Paul Grewal alleges a coordinated effort to restrict crypto activities, including Bitcoin transactions, within financial institutions.
• The claims relate to Operation Choke Point 2.0, mirroring tactics used in 2013 to target high-risk industries without due process.
• Grewal and Ripple’s Stuart Alderoty urge Congress to investigate regulatory actions potentially stifling the cryptocurrency sector’s growth.

In a recent post, Paul Grewal, chief legal officer at Coinbase, has claimed there was a coordinated effort to suppress various cryptocurrency activities. This included even basic Bitcoin transactions, according to recently published letters supporting the crypto industry’s concerns about Operation Choke Point 2.0. 

Operation Choke Point refers to a contentious initiative unveiled in 2013 by The Wall Street Journal. It involved the Federal Deposit Insurance Corporation (FDIC) issuing informal guidance to banks to reduce services for industries considered high-risk. These activities varied from payday loans to fireworks sales. Critics accused the FDIC of bypassing due process to unfairly target certain industries. 

Crypto advocates claim similar methods have been applied against the sector. Legal experts argue this alleged initiative began in 2021 when the Office of the Comptroller of the Currency (OCC) started requiring pre-approval for banks engaging in crypto-related activities. In 2022, the FDIC reportedly followed this approach, further limiting banks’ involvement in cryptocurrencies.

Grewal has urged Congress to take quick action to investigate these claims. He stressed the need for clarity and accountability, calling for hearings to discuss these alleged practices. His comments align with broader concerns raised by crypto industry leaders, who argue that the space has been unfairly targeted under the cover of regulatory oversight.

Ripple’s legal chief, Stuart Alderoty, has also spoken extensively on the matter, describing what he sees as the origin story of this anti-crypto initiative. He linked these measures to a broader effort to curb the crypto sector’s growth by creating hurdles for financial institutions seeking to engage in crypto services.

The recently uncovered letters have supported the cryptocurrency industry’s claims that such efforts have been deliberate. Grewal’s call for a congressional investigation recalls growing pressure on lawmakers to investigate whether regulatory agencies acted appropriately or unfairly targeted the crypto space.