A U.S. federal judge criticized the Federal Deposit Insurance Corporation (FDIC) for redacting crypto "pause letters" sent to banks, in the context of a Freedom of Information Act (FOIA) lawsuit supported by Coinbase. The "pause letters," some of which have entire pages redacted, reveal that the FDIC inquired with 23 financial institutions regarding their activities related to cryptocurrency.
In several letters, the FDIC instructed the firms to "halt all activities related to crypto assets" or to "avoid offering" or "increasing" what appear to be crypto-related products and services. Earlier this month, Coinbase legal chief Paul Grewal mentioned that the letters supported a long-standing rumor within the crypto industry that the Biden administration was attempting to sever the industry's access to financial services, a strategy referred to as "Operation Chokepoint 2.0."
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