Coinbase's chief legal officer has accused the FDIC of taking covert action to crack down on the crypto industry

Coinbase Chief Legal Officer Paul Grewal has accused the Federal Deposit Insurance Corporation (FDIC) of taking covert actions to crack down on the crypto industry.
Grewal claims that documents obtained through the Freedom of Information Act revealed a series of so-called suspension letters.
In these letters, the FDIC is said to have instructed banks to delay or stop providing services to crypto companies.
He described the letters as "a shameful example of U.S. government entities trying to cut off financial access to law-abiding U.S. companies," and noted that the FDIC was unfairly targeting legitimate crypto companies and restricting their access to banking services.
Documents shared by Coinbase show that FDIC officials have urged banks to avoid launching or expanding crypto-related services due to concerns such as security and robustness, as well as potential consumer risks.
In each case, the FDIC has asked banks to wait until it completes further reviews - a process that Coinbase argues creates unfair barriers for crypto companies.