TechFlow reported on January 4, citing Decrypt, that newly declassified documents obtained by Coinbase through the Freedom of Information Act (FOIA) reveal the Federal Deposit Insurance Corporation (FDIC) had explicitly opposed its member banks using public blockchain networks to offer services.
The documents disclose that in March 2022, the FDIC's New York office sent a letter to a member bank expressing concerns over the bank’s plan to launch a "bank digital deposit" product on a public blockchain, and required a new, detailed review before launching any products based on public blockchains. Additionally, the documents show the FDIC previously asked member banks to suspend all services related to buying and selling bitcoin and other crypto asset activities.
Coinbase Chief Legal Officer Paul Grewal said these documents further confirm the existence of the Biden administration's so-called "Operation Chokepoint 2.0," which uses banking regulations to suppress the cryptocurrency industry.
