Key Points:

• US Banks Crypto Warning revealed FDIC letters advising banks to halt crypto services, impacting industry operations.
• US Bank’s Crypto Warning highlights FDIC efforts to prevent financial institutions from engaging in crypto-related activities.

US Banks Crypto Warning exposed through FDIC letters obtained by Coinbase, revealing a campaign to block crypto businesses from financial services.

US Banks Crypto Warning: FDIC Letters Unveiled

According to Coinbase, private FDIC memos advised US banks to discontinue crypto business. The regulator’s strict stance on digital assets, revealed by legal action, affects financial institutions’ ability to help crypto firms. The severely blackened letters are cautious, citing compliance and safety considerations.

The crypto sector and regulators are at odds after this disclosure. Coinbase‘s Chief Legal Officer, Paul Grewal, termed the results evidence of deliberate banking system exclusions. For transparency, the company wants a review of the deleted regions to reveal banking regulatory control, according to CoinDesk.

Read more: Plans For New Retail CBDC In UK To Go Forward If Banks Stall

Operation Chokepoint 2.0 Resurfaces in Crypto Regulation

Crypto industry compares FDIC’s actions to “Operation Chokepoint 2.0.” In the name of compliance and operational safety, the freshly revealed letters show concerted crypto industry efforts to block financial institution access.

Representatives and industry leaders have denounced this apparent debunking drive, reigniting debates over government overreach. Proponents of cryptocurrencies say these restrictions limit economic growth and innovation and require more responsibility and rules. Congress is debating a balanced regulatory structure that promotes innovation and addresses risks.