Coinbase Fights Against SEC and FDIC

• Coinbase has been probing into the US SEC and FDIC’s crackdown on the crypto industry.
• MetaLawMan calls Coinbase’s Paul Grewal an intrepid detective who exposes the agencies’ actions.
• Many industry leads speculate the agencies move as a part of Operation Choke Point 2.0.

Coinbase and its chief legal officer, Paul Grewal, have been investigating the US SEC and FDIC’s actions towards the crypto industry. James Murphy, a prominent crypto voice known on X as MetaLawMan, dubbed Grewal the “intrepid detective” uncovering the government’s alleged crackdown on crypto, which many call “Operation Choke Point 2.0.”

In late June 2024, Coinbase filed a lawsuit against the Securities and Exchange Commission and FDIC for their alleged attempt to stifle the crypto industry. The lawsuit demanded that the regulator and banking agency produce documents detailing their approach to cryptocurrencies and crypto regulation.

Coinbase’s Lawsuit Seeks Transparency

Grewal’s previous X post highlighted the agencies’ lack of clear guidelines for financial institutions. The platform is taking legal action to gain clarity on probes and communications affecting the cryptocurrency sector. From the SEC, Coinbase requests documents to share insights on their classification of crypto securities. Additionally, the crypto platform demands copies of “pause letters” that FDIC claims to have sent to financial firms. The agency previously stated that it criticized the financial institutions for their move against crypto.

Read also: Coinbase Wins Partial Victory in SEC Case, Gains Access to Key Documents

However, Grewal asserted that the agencies have been trying to “cripple the digital asset industry” through multiple tools. He stated that the SEC had been reluctant to provide regulatory clarity for the crypto industry. Challenging FDIC’s seemingly contradicting statements, he pointed out that the banking agency has pressured financial institutions to cut off the crypto industry from the financial system.

The United Texas Bank has become the latest casualty in the list of banks impacted by their connection with cryptocurrencies. Another prominent institution that has been affected is Customers Bancorp, which industry leads speculated was another instance of Chokepoint 2.0. MetaLawMan criticizes Coinbase and other crypto platforms for being forced to conduct their own investigations into these issues rather than having regulatory bodies or law enforcement agencies handle them.