Coinbase CLO Slams FDIC For Trying to “Kill BTC Transactions”

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Paul Grewal from Coinbase has highlighted yet again how the Federal Deposit Insurance Commission (FDIC) played a significant part in the early efforts to control Bitcoin (BTC). In his statement, Grewal emphasized that Operation Chokepoint 2.0 was perceived as a considerable hurdle for the United States. Nevertheless, he pointed out that the FDIC’s misuse of FOIA Exemption 8 continues to be an affront to public trust and the judicial system.

The New Coinbase CLO Discoveries In FDIC Files

According to Paul Grewal’s statements, the FDIC appears to have misrepresented facts in their dealings with the exchange and courts during the FOIA dispute. He argued that the evidence suggests the commission took steps to conceal information indicating they attempted to halt Bitcoin transactions. Furthermore, he alleged that the regulator also sought to suppress blockchain technology and the creation of an account for stablecoin reserves.

Specifically, Coinbase’s CLO pointed out extensive blackouts in the initial FDIC letters received. He mentioned that even the judge presiding over the case voiced disapproval at the agency’s efforts to conceal certain details. In defense of these redactions, the regulatory body cited Exemption 8, explaining they had withheld some information because its disclosure could potentially harm the affected companies.

According to the FDIC, it’s possible that the firm’s marketing and business practices could become public knowledge. But upon receiving the unedited documents, Coinbase’s team found no evidence that the confidential details disclosed would have any significant effect on businesses within the industry.

It has become apparent that the redactions made caused no foreseeable damage whatsoever. In fact, they did not cause any harm at all. We removed the previously redacted information and revealed what was originally ordered to remain unredacted. Trust us neither, take a look for yourself: 5/6

— paulgrewal.eth (@iampaulgrewal) January 6, 2025

Once more, Paul Grewal advocates for an investigation into the chokepoint issue, aiming to stop such occurrences from happening again.

Changes Coming Soon

Despite not meeting the industry’s expectations, Michael Barr has chosen to step down from his crucial position as banking supervisor at the Federal Reserve. His resignation won’t take effect until February, but relinquishing this role may result in a less stringent watch over banks.

Barr advocates for strong stablecoin regulations, often seen as a key obstacle in the process of integrating cryptocurrencies into traditional banking systems.

In about two weeks, Donald Trump’s inauguration is set to occur, and the crypto industry anticipates significant shifts in policy beyond the CLO’s proposal for OCP 2.0. Key figures such as David Sacks, appointed as Trump’s Crypto Czar, Paul Atkins nominated for SEC Chair, and other officials are poised to promote pro-crypto policies and drive change within this sector.

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2025-01-07 01:39