Coinbase Legal Chief Points Finger at FDIC in Alleged Crypto Banking Blocks

Alleging that the FDIC is obstructing a fair and open crypto market

Coinbase's legal chief, Paul Grewal, has accused the Federal Deposit Insurance Corporation (FDIC) of obstructing a fair and open crypto market by allegedly pressuring banks not to do business with crypto companies.

In a blog post published on Tuesday, Grewal accused the FDIC of "engaging in a pattern of informal guidance that discourages banks from providing banking services to cryptocurrency businesses."

Grewal cited several examples of banks that have allegedly been pressured by the FDIC to close accounts held by crypto companies, including Silvergate Bank, Signature Bank, and Metropolitan Commercial Bank.

The FDIC's actions are "unfair, arbitrary, and capricious"

Grewal argued that the FDIC's actions are "unfair, arbitrary, and capricious" and that they are "impeding the growth of the cryptocurrency industry in the United States."

He also accused the FDIC of "failing to provide a clear and consistent regulatory framework for banks that want to do business with crypto companies."

The FDIC has not yet publicly responded to Grewal's accusations.

Coinbase's accusations come amid a broader crackdown on crypto by US regulators

Coinbase's accusations against the FDIC come amid a broader crackdown on crypto by US regulators.

In recent months, the Securities and Exchange Commission (SEC) has taken enforcement actions against several crypto exchanges, including Coinbase, for allegedly violating securities laws.

The Commodity Futures Trading Commission (CFTC) has also taken enforcement actions against several crypto companies, including BitMEX, for allegedly violating commodities laws.

The crypto industry is calling for clear and consistent regulation

The crypto industry has called for clear and consistent regulation from US regulators.

In a letter to Congress in May, the Blockchain Association, a trade group representing the crypto industry, urged lawmakers to pass legislation that would provide a clear regulatory framework for crypto companies.

The letter argued that the lack of clear regulation is "impeding the growth of the cryptocurrency industry in the United States" and is "putting American consumers at risk."