The FDIC sent ‘pause letters’ to banks, advising them to halt services to crypto clients. Coinbase’s Chief Legal Officer, Paul Grewal, has criticized these actions and accused the FDIC of using FOIA exemptions to withhold information. He sees this as an aggressive move against the crypto industry, raising serious concerns.

Coinbase is taking legal action against the FDIC to access documents related to the ‘pause letters.’ The FDIC had redacted much of these letters, claiming the release could harm bank-regulator relationships. Grewal argues these redactions are unjustified, suggesting they are meant to hide ‘Operation Choke Point 2.0.’

The actions of the FDIC have raised concerns over access to financial services for crypto clients and other groups. Critics argue that unelected officials are unfairly limiting access, affecting sectors like religious institutions and clients from African countries. This issue highlights ongoing challenges in cryptocurrency and financial regulation.