Coinbase's Chief Legal Officer accuses the U.S. FDIC of taking secret actions to suppress the cryptocurrency industry

ChainCatcher news, according to DL News, Coinbase Chief Legal Officer Paul Grewal accused the Federal Deposit Insurance Corporation (FDIC) of taking secret actions to suppress the crypto industry.

Grewal claimed that documents obtained through the Freedom of Information Act revealed a series of so-called "pause letters."

It is alleged that in these letters, the FDIC instructed banks to delay or stop providing services to crypto companies.

He described these letters as "a shameful example of a U.S. government agency attempting to cut off the financial channels of law-abiding American companies," and pointed out that the FDIC is unfairly targeting legitimate crypto companies, limiting their access to banking services.

Documents shared by Coinbase show that FDIC officials urged banks to avoid launching or expanding crypto-related services due to concerns about "safety and soundness" as well as potential consumer risks.

In every case, the FDIC requested that banks wait until it completed further review—Coinbase believes this process sets unfair barriers for crypto companies.