Coinbase Uncovers FDIC Warnings That Could Restrict Crypto Banking Access
Coinbase has found over 20 instances where the Federal Deposit Insurance Corporation (FDIC) advised banks to pause or avoid crypto-related activities.
The FDIC’s Vaughn Index reveals letters warning banks about risks associated with crypto assets, particularly concerning consumer protection and financial stability.
As early as March 2022, the FDIC was urging banks to halt crypto projects due to unresolved supervisory concerns. For example, on March 11, 2022, FDIC Assistant Regional Director Eric T.
Guyot recommended a bank “pause all crypto asset-related activity” while assessing potential risks. Similarly, on March 25, 2022, Acting Regional Director Jessica A. Kaemingk urged a bank to reconsider its crypto program for safety reasons.
READ MORE: US Crypto Developer Share Declines Sharply, Raising Concerns Over Future Leadership
Commenting on these findings, Coinbase’s Chief Legal Officer, Paul Grewal, stated that the FDIC’s stance could limit the crypto industry’s access to essential banking services and emphasized the need for a more transparent regulatory environment. He also announced plans to continue filing Freedom of Information Act (FOIA) requests for further insights into regulatory practices.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
