FDIC Documents on Operation Chokepoint Reveal U.S. Regulators Advised Banks to Pause Crypto Activities, No Full Ban Issued

Recent documents released by the Federal Deposit Insurance Corporation (FDIC) indicate that U.S. regulators advised banks to pause their direct involvement in cryptocurrency activities during 2022 and 2023.

However, these documents clarify that the FDIC did not prohibit banks from offering banking services to cryptocurrency companies. The unredacted letters, obtained through a court order, reveal a coordinated effort to limit various crypto activities, including basic Bitcoin transactions and more complex offerings.

Coinbase has leveraged these documents in its ongoing investigation into what it describes as Operation Chokepoint, highlighting potential discrimination against Bitcoin and other cryptocurrencies. The FDIC's stance has raised concerns among industry participants about the regulatory landscape for cryptocurrencies in the U.S.

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