1-4-2025 – Cryptocurrency powerhouse Coinbase has locked horns with the Federal Deposit Insurance Corporation (FDIC) over allegations of stonewalling crucial information exchange.
The digital assets platform contends that since late February, the American banking regulator’s refusal to share vital documents has significantly hampered their legal defence. Paul Grewal, the firm’s top legal mind, whilst expressing a preference for amicable resolution, has taken aim at what he perceives as the FDIC’s dereliction of duty regarding transparency obligations.
Meanwhile, a ray of hope has emerged on the state regulatory front, with South Carolina joining Vermont in dismissing legal challenges against Coinbase’s staking services. This development signals a potential watershed moment for cryptocurrency enthusiasts, with Grewal heralding it as a triumph for both the company and American consumers.
At the heart of this regulatory maelstrom lies Operation Choke Point 2.0, a contentious regulatory approach that crypto advocates claim has unfairly severed vital banking relationships for digital currency firms. The FDIC maintains that Coinbase’s information requests exceed reasonable bounds, yet their stance has sparked widespread concern about regulatory transparency.
The dominoes keep falling. South Carolina just joined Vermont to dismiss its unfounded staking lawsuit against @Coinbase. Staking will very soon be back for Coinbase users in South Carolina. This is not just a victory for us, but for American consumers and we hope it’s a sign of…
— paulgrewal.eth (@iampaulgrewal) March 27, 2025
