As a seasoned researcher with years of experience delving into the intricacies of financial regulations and the digital asset space, I find the recent revelations surrounding Operation Chokepoint 2.0 quite concerning yet intriguing. The documents obtained by Coinbase Global Inc. provide a chilling glimpse into what appears to be a deliberate attempt by the FDIC to isolate cryptocurrency firms from engaging with traditional banking institutions.
After Coinbase Global Inc (NASDAQ: COIN) uncovered solid proof against U.S. regulators regarding Operation Chokepoint 2.0, the cryptocurrency community has resumed debating this topic once more. In 2022, the Federal Deposit Insurance Corporation (FDIC) reportedly asked various banks to refrain from offering services to crypto companies.
Coinbase Obtain Redacted Documents From FDIC
Through their work with research firm History Associates Inc, Coinbase uncovered evidence. As stated by Coinspeaker, this firm had previously taken legal action against both the Federal Deposit Insurance Corporation (FDIC) and the Securities and Exchange Commission (SEC), led by Gary Gensler, earlier in the year. This lawsuit granted them access to certain internal communications within the FDIC.
Despite the extensive redactions in the documents, it was challenging for crypto firms to conceal the stern warning they received from banking regulators. One of the 23 letters sent to U.S. banks by the FDIC politely requested a halt to all activities related to cryptocurrencies.
Later on, all banks under the oversight of the FDIC will be informed about the FDIC’s expectations regarding cryptocurrency-related activities once a decision has been reached.
As Paul Grewal, Chief Legal Officer at Coinbase, stated, these letters represent just a small portion of the documents held by the FDIC. These specific letters serve as tangible proof, suggesting that the regulator is making a significant effort to discourage the crypto industry from interacting with the banking sector, which he does not view as a conspiracy theory.
Regarding the recent discussions about Operation Chokepoint 2.0, it appears that the FDICgov continues to conceal details by using excessive redactions. They have yet to disclose most of the documents and only recently provided the “pause letters.
— paulgrewal.eth (@iampaulgrewal) December 6, 2024
Grewal doesn’t dismiss the views of the FDIC and SEC as mere speculation or rants from an overly cautious sector. Instead, he interprets them as deliberate strategies coming from the FDIC. Moreover, apart from censored details, many financial institution names were also withheld.
US Regulators Fails to Provide Clarity on Crypto Regulations
According to the available data, it appears that bankers did not meet the requirements necessary for the Federal Deposit Insurance Corporation (FDIC) to approve cryptocurrency-related activities.
They needed to explain their strategies for fulfilling compliance requirements, but at that point, it was not fully understood how they would do so.
In certain instances, Coinbase found that the relevant activities had already been interrupted prior to their initiation. Additionally, they advised some banks to halt additional growth in specific areas. In other scenarios, they requested a bank to postpone a particular business line until they could complete their evaluation of the company’s application.
A common example occurred when the FDIC communicated with a bank, stating, “Please make sure you adequately respond to these questions, as well as any future ones (before putting them into action), to guarantee the bank functions safely and responsibly.
Additionally, these banks encountered challenging and intricate queries. It’s noteworthy that these correspondence pieces also highlighted certain gaps in the regulator’s capabilities. They suggested that the regulatory body was yet to establish the necessary documentation needed for approval of cryptocurrency ventures.
Currently, the main financial regulatory bodies in the United States, such as the Federal Reserve, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation, have not released any definitive guidelines for overseeing the cryptocurrency industry.
According to Coinbase’s Chief Legal Officer, the next move involves the court requesting all redacted information from the documents to facilitate a deeper probe in the ongoing investigation.
Read More
- The Beauty Cast Adds Rebecca Hall to Ryan Murphy’s FX Series
- How Much Did Taylor Swift’s Eras Tour Contribute to the US Economy?
- Boney Kapoor cites Jr NTR in War 2 as example when Siddharth asks if a ‘new face’ from South can find success in Bollywood today
- Who Is Kelly Reilly’s Husband? Kyle Baugher’s Job & Relationship History
- IMX PREDICTION. IMX cryptocurrency
- What Happened to Richard Perry? ‘You’re So Vain’ Music Producer Passes Away
- Skeleton Crew Episode 4 Ending Explained: What Happens to Neel?
- Arnold Schwarzenegger’s Santa & Alan Ritchson Smile for First Man With The Bag Photo
- Old Guy Trailer Sets Release Date for Christoph Waltz Action Comedy
- Bitcoin Decline Continues: Are Bulls Losing Control?
2024-12-06 22:03