{"id":2044,"date":"2024-11-02T22:03:28","date_gmt":"2024-11-02T22:03:28","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=2044"},"modified":"2024-11-02T22:03:28","modified_gmt":"2024-11-02T22:03:28","slug":"are-crypto-banks-in-danger-fdic-pause-letters-spark-fears-of-operation-chokepoint-2-0","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=2044","title":{"rendered":"Are Crypto Banks In Danger? FDIC \u2018Pause Letters\u2019 Spark Fears Of Operation Chokepoint 2.0"},"content":{"rendered":"
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A cryptocurrency exchange accused the US government of undermining the cryptocurrency sector orchestrating a campaign against digital currencies.<\/p>\n

Coinbase revealed that the US Federal Deposit Insurance Corporation (FDIC) has been employing tactics to dissuade financial institutions from engaging in crypto-related activities.<\/p>\n

FDIC: Stay Away From Crypto<\/h2>\n

Coinbase claimed that FDIC had sent letters to several financial establishments to ask them to stay away from getting involved in cryptocurrency-related investments.<\/p>\n

Coinbase\u2019s Chief Legal Officer Paul Grewal revealed that they have found proof of FDIC\u2019s anti-crypto campaign<\/a>, telling American financial institutions to keep their hands off digital currency investments.<\/p>\n

\"\"<\/p>\n

So far, Grewal said that they had come across \u201cmore than 20 examples\u201d of these tactics opposing cryptocurrencies, adding that the US agency told financial institutions to \u201cpause\u201d, \u201crefrain from providing\u201d or \u201cnot proceed\u201d with providing banking services for digital assets.<\/p>\n

\n

Slowly but surely, the picture is becoming clear. After we sued, @FDICgov<\/a> finally started giving us information related to our FOIA request about the pause letters it sent to financial institutions as part of Operation Chokepoint 2.0. In short, the contents are a shameful example\u2026<\/p>\n

\u2014 paulgrewal.eth (@iampaulgrewal) November 1, 2024<\/a><\/p>\n<\/blockquote>\n

\u201cSlowly but surely, the picture is becoming clear,\u201d Grewal said in a post as Coinbase started receiving the information from the FDIC for its Freedom of Information Act (FOIA) request regarding the letters sent to banks in line with the so-called Operation Chokepoint 2.0.<\/a><\/p>\n

In an earlier interview, US Senator Bill Hagerty said that Operation Choke Point 2.0 is the \u201ccoordinated effort\u201d by the government\u2019s financial authorities to suffocate the domestic digital currency economy by \u201cde-banking the industry\u201d and deterring American entrepreneurs from having interest in digital assets.<\/a><\/p>\n

<\/p>\n

Coinbase Calls For Transparency<\/h2>\n

Grewal said the American public should know the truth because they deserve transparency, criticizing FDIC for using such tactics and \u201cworking behind a bureaucratic curtain.\u201d<\/p>\n

He described the contents of the letters as shameful examples of a state-run agency making an effort to keep law-abiding American companies away from accessing cryptocurrencies.<\/p>\n

\"\"
\nA Cloud Of Doubt<\/p>\n

Documents submitted to the court showed that FDIC doubts the risk assessments being performed by banks involving bitcoin services, hence the US financial agency told banks to hold off their plans of offering such services until the evaluation is done.<\/p>\n

In one of the letters, FDIC Assistant Regional Director Eric T. Guyot asked a certain financial institution to \u201cpause all crypto asset-related activity\u201d to allow the FDIC to examine the safety and soundness of the crypto product the bank planned to offer.<\/p>\n

In another letter dated March 25, 2022, FDIC acting Regional Director Jessica A. Kaemingk persuaded a financial establishment to \u201crethink\u201d their proposal of rolling out a digital asset product, questioning the planned offering\u2019s \u201csafety and soundness\u201d and urging the bank to submit additional documents.<\/p>\n

Financial Regulations<\/p>\n

The current battle between Coinbase and FDIC is part of the ongoing saga on the true relationship between government regulations and the cryptocurrency space. It will be an added item to the continuous debate on how to strike a balance between consumer protection and innovation in cryptocurrency.<\/p>\n

Featured image from Banner Health, chart from TradingView<\/em><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

A cryptocurrency exchange accused the US government of undermining the cryptocurrency sector orchestrating a campaign against digital currencies. Coinbase revealed that the US Federal Deposit Insurance Corporation (FDIC) has been employing tactics to dissuade financial institutions from engaging in crypto-related activities. FDIC: Stay Away From Crypto Coinbase claimed that FDIC had sent letters to several […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-2044","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/2044","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2044"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/2044\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2044"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2044"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2044"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}