Coinbase Legal Chief Accuses US FDIC of Suppressing Crypto Industry

Coinbase Chief Legal Officer Paul Grewal has accused the Federal Deposit Insurance Corporation (FDIC) of taking covert action to suppress the crypto industry, according to DL News. Grewal claims that documents obtained through the Freedom of Information Act show a series of so-called “suspension letters” in which the FDIC instructed banks to delay or stop providing services to crypto companies, citing concerns about “safety and soundness” and potential consumer risks. “Grewal points out that the FDIC is unfairly targeting legitimate crypto firms and limiting their access to banking services, and the documents shared by Coinbase show that in each case, the FDIC has required the bank to wait until it has completed further reviews, a process that Coinbase believes creates unfair barriers for crypto firms. companies by placing unfair barriers in their way.