Coinbase has revealed letters from the Federal Deposit Insurance Corporation (FDIC) urging banks to halt crypto operations. This move parallels the controversial “Operation Chokepoint,” raising alarm within the crypto industry. Industry leaders, including Ripple, argue these actions are unconstitutional. Legal challenges may ensue to address regulatory overreach.

The FDIC’s actions cast uncertainty over crypto banking’s future. Critics claim the agency’s directives stifle industry growth, marking a potential repeat of past regulatory tactics aimed at specific sectors. With increasing industry backlash, this situation echoes broader concerns about market competition and innovation within the financial landscape.