Coinbase Presses FDIC for Answers on Crypto Banking Restrictions

Highlights:

• Paul Grewal has alleged that the FDIC has refused to be transparent on the debanking request.
• OCC will allow banks to offer crypto custody and stablecoin services without approval.
• Crypto leaders are demanding clear rules for the development of the industry.

Coinbase has accused the Federal Deposit Insurance Corporation (FDIC) of refusing to provide information related to Operation Choke Point 2.0, which led to many crypto firms losing access to banking services. Coinbase’s Chief Legal Officer, Paul Grewal, said that the FDIC has previously declined to provide details about its involvement in the bank restrictions imposed on crypto companies. In addition, he complained that the agency had not transparently explained how it preserved important documents.

They haven't gotten the message. Despite a huge week for crypto across the rest of the federal government, on this late Friday night over at @FDICgov staff still continue to resist basic transparency into Operation Chokepoint 2.0. A few stark examples: 1/5

— paulgrewal.eth (@iampaulgrewal) March 8, 2025

Coinbase has asked the FDIC to confirm whether it followed due diligence in handling documents related to the crackdown. However, Grewal said that the agency has failed to provide a clear response and has only shared snippets of unrelated documents. He also pointed out that the FDIC withheld 53 pages of requested documents, with some heavily redacted, making them unreadable.

The crypto exchange has criticized the FDIC for not being open about its handling of Freedom of Information Act (FOIA) requests. Grewal questioned what the agency was hiding and why it had been reluctant to grant full access to requested information.

Government and Banking Agencies Take Different Stances on Crypto

Despite the FDIC’s refusal to cooperate with Coinbase’s transparency requests, the Office of the Comptroller of the Currency (OCC) has chosen a different route. The OCC had reversed its 2020 guidance that prohibited banks from offering crypto services without seeking supervisory nonobjection.

JUST IN: 🇺🇸 US regulator OCC confirms banks can engage in Bitcoin & crypto services like asset custody. pic.twitter.com/gKbYnl0UrQ

— Bitcoin Magazine (@BitcoinMagazine) March 7, 2025

During the White House Crypto Summit, President Donald Trump spoke about changes in banking policies affecting the crypto industry. He said that his administration would roll back actions that had prevented crypto businesses from accessing traditional financial services. His comments suggested that past restrictions on digital assets would no longer be enforced.

According to Fox Business journalist Eleanor Terret, the OCC’s decision to reverse its crypto banking policy was an important step. According to her, banks and crypto businesses had been waiting for this change, which could potentially pave the way for partnerships between banks and the crypto sector to open new opportunities.

🚨NEW: As I reported yesterday, the rollback of Biden-era banking regulations that the #crypto industry says enabled so-called “Operation Chokepoint 2.0” are one of the products of this White House Crypto Summit and something Trump referred to in his remarks just now.… https://t.co/U4OQ1PmmQ5 pic.twitter.com/wuWRGrgc09

— Eleanor Terrett (@EleanorTerrett) March 7, 2025

Even with these shifts, Coinbase is still struggling to get data from the FDIC. The crypto exchange has repeatedly emphasized how transparency will allow people to understand the reasoning behind banking restrictions for crypto businesses.

Crypto Industry Calls for Clarity as Dispute Over Information Continues

The ongoing feud between Coinbase and the FDIC has fueled fears over the willingness of the FDIC to cooperate and share information. Crypto leaders have stressed the need for clear and consistent policies so that businesses in the crypto industry do not get unfairly denied access to banking services.

Coinbase is among the companies that have called for transparency on how government agencies treated banks dealing with crypto companies during Operation Choke Point. The exchange has argued that withholding key details makes it impossible to evaluate whether the restrictions were justified.