TechFlow news, November 3 — According to DL News, Coinbase Chief Legal Officer Paul Grewal accused the U.S. Federal Deposit Insurance Corporation (FDIC) of taking covert actions to suppress the crypto industry. Grewal claimed that documents obtained through the Freedom of Information Act revealed a series of so-called "pause letters," in which the FDIC instructed banks to delay or halt services for cryptocurrency firms. He described these letters as a "shameful example of a U.S. government agency attempting to cut off financial pipelines to law-abiding American companies," arguing that the FDIC is unfairly targeting legitimate crypto businesses and restricting their access to banking services.
Documents shared by Coinbase show that FDIC officials urged banks to avoid launching or expanding crypto-related services due to concerns over "safety and soundness" and potential consumer risks. In each case, the FDIC required banks to wait until further reviews were completed—a process Coinbase argues creates an unfair barrier for crypto companies.
