TechFlow reported on December 6 that, according to CoinDesk, internal communications obtained by a research firm commissioned by Coinbase reveal the U.S. Federal Deposit Insurance Corporation (FDIC) suspended or blocked cryptocurrency banking services at numerous American banks in 2022.
History Associates Inc., the research firm hired by Coinbase, sued the FDIC and the Securities and Exchange Commission (SEC) in June this year, ultimately gaining access to some of the FDIC's internal communications. Heavily redacted documents released Friday show the banking regulator halted multiple banks from offering or planning to offer digital asset-related products and services.
In one of 23 letters shared by the cryptocurrency exchange, the regulator stated: "We request that you pause all crypto-asset related activities. The FDIC will notify all FDIC-supervised institutions when it determines the supervisory expectations for engaging in crypto-asset related activities."
Coinbase Chief Legal Officer Paul Grewal said these letters provide clear evidence that crypto businesses were systematically cut off from banking services by regulators. "The FDIC developed a coordinated plan and executed it without hesitation to deprive a legitimate U.S. industry of banking services. This should give everyone pause," said Paul Grewal.
