Coinbase accused the U.S. Federal Deposit Insurance Corporation (FDIC) of secretly trying to suppress the encryption industry. The company claims that documents obtained through the Freedom of Information Act reveal a series of “suspension letters” in which the FDIC allegedly directed banks to delay or stop servicing crypto companies.
Coinbase argues that these actions are unfair and limit access to banking services for legitimate crypto companies. FDIC officials are said to have urged banks to avoid launching or expanding crypto-related services due to concerns about “security and soundness” and potential consumer risks. In each case, the FDIC asked the bank to wait until it completed further review, creating unfair barriers for crypto companies.
