In a twist fit for a thriller, Coinbase’s latest intel shows U.S. regulators creeping into banks’ crypto biz under the radar. Paul Grewal, Coinbase’s top legal brain, just leaked that his team has found over 20 examples of the Federal Deposit Insurance Corporation (FDIC) nudging banks to ghost the crypto crowd. Not exactly front-page stuff, until now.
Freedom of Information Moves: Coinbase Sheds Light on FDIC’s Silent Signals
Coinbase didn’t luck into this revelation. They yanked these secrets through two Freedom of Information Act (FOIA) requests aimed squarely at the FDIC’s vaults. Coinbase, tired of what they call “backroom whispers,” demanded transparency around the agency’s stance on crypto-linked banking. Grewal’s Nov. 1 post on X (formerly Twitter) cracked it wide open: he claims the FDIC nudged U.S. banks to “pause,” “refrain,” or “not proceed” with crypto services. Coinbase, it seems, wants these government undercurrents known, insisting that public trust can’t operate on “bureaucratic curtains.”
Coinbase’s document stash points to 23 separate FDIC nudges, each a faint but firm message to banks that crypto might bring trouble. Banks were advised to hit the brakes until their crypto plans could pass through a hidden review pipeline—one that just keeps running.
Document 5: An Example of FDIC’s Not-So-Gentle Persuasion
One file, flagged as “Document 5,” shows the FDIC calling a bank into a closed-door meeting. Their goal? A forensic audit of the bank’s crypto offerings. The bank tried to squash any concerns with a neat pile of compliance docs, but the FDIC wasn’t buying it. Instead, they shot back with fresh “questions,” suggesting the bank cool its crypto ambitions until they could comb through the fine print.
This isn’t a one-off, and it’s not just Document 5. Coinbase argues that this pattern is a low-profile maneuver to blunt crypto’s edge, as banks are left in limbo, hemmed in by cautionary tales of “risk.”
Coinbase Eyes 2024: Prepping to Play Ball with Any Admin
Looking ahead to 2024, Coinbase is walking the line. Their stance? They’re “prepared to work with either administration,” whether it’s Democrat Kamala Harris or Republican Donald Trump taking the reins. In other words, Coinbase isn’t laying low; they’re ready to shake hands with whomever, just as long as the crypto path stays clear.
For now, this document drop leaves us on the edge, revealing just how deep the FDIC’s hesitations run in the cryptoverse.
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