24/7 Cryptocurrency News

Coinbase CLO Slams FDIC For Trying to “Kill BTC Transactions”

In further reference of the FDIC files, Coinbase CLO Paul Grewal called out the commission again over plans to kill Bitcoin
Published by
Coinbase CLO Slams FDIC For Trying to “Kill BTC Transactions”

Highlights

  • Coinbase CLO just exposed more FDIC's lies in the FOIA case
  • Paul Grewal claims the regulator tried to kill Bitcoin transactions
  • Regulatory changes coming to key government agencies including the Federal Reserve

Coinbase CLO Paul Grewal has once again spotlighted the role of the Federal Deposit Insurance Commission (FDIC) in the attempt to crackdown on Bitcoin (BTC) in the early days. Paul Grew reiterated that many considered Operation Chokepoint 2.0 a serious challenge for the US. However, he said the FDIC’s abuse of FOIA Exemption 8 remains an insult to the public and the courts.

Advertisement

The New Coinbase CLO Discoveries In FDIC Files

According to Paul Grewal, the FDIC lied in its communication with the exchange and the courts in the FOIA legal battle. He said the evidences showed that the commission made efforts to hide evidence that showed it tried to kill Bitcoin transactions. Beyond this, he confirmed the regulator also tried quashing blockchain as a technology and the establishment of an account for stablecoin reserves.

Specifically, the Coinbase CLO flagged the massive redactions in the first FDIC letters handed over. He noted that even the Judge in the case expressed dissatisfaction regarding the details the agency tried to cover up. As part of its excuses under Exemption 8, the regulator noted that it retrieved some information as it may harm the target firms.

The FDIC said the firm’s marketing and business operations might be made known to the public. However, when Coinbase received the unredacted files, Grewal said the team saw no proof that the shielded details would have impacted any business in the industry.

Again, Paul Grewal is calling for a probe of this chokepoint agenda in order to prevent its recurrence.

Advertisement

Changes Coming Soon

While it might not come off as what the industry expected, Michael Barr has resigned from a key role as banking supervisor at the Federal Reserve. Although his departure will not be effective until February, leaving the role might losing the strict oversight on banks.

Barr is pro-stablecoin regulation and many considered him a major barrier preventing the integration of crypto into banks.

With the Donald Trump inauguration coming in 2 weeks, the crypto industry expects defined changes beyond the Coinbase CLO’s call for OCP 2.0. Donald Trump’s Crypto Czar appointee David Sacks, SEC Chair nominee Paul Atkins and other officials will help drive pro-crypto policies.

Advertisement

Share
Godfrey Benjamin

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on X, Linkedin

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • 24/7 Cryptocurrency News

VanEck Registers Lido Staked Ethereum Trust in Delaware, LDO Up 7%

VanEck has formally registered its VanEck Lido Staked Ethereum ETF in Delaware. If approved, this…

October 3, 2025
  • 24/7 Cryptocurrency News

Fed’s Lorie Logan Urges Caution on Further Rate Cuts Citing Inflation Risks

Federal Reserve Bank of Dallas President Lorie Logan is the latest Fed official to share…

October 3, 2025
  • 24/7 Cryptocurrency News

Nasdaq-Listed Fitell Adds Pump.fun’s PUMP To Supplement Solana Treasury

Australia’s Fitell Corporation has purchased 216.8 million PUMP tokens for $1.5 million. The Nasdaq-listed company…

October 3, 2025
  • 24/7 Cryptocurrency News

FG Nexus to Tokenize Stock on Ethereum as SEC Weighs 24/7 Onchain Stock Trading

FG Nexus has announced that it will allow shareholders to convert common stock into tokenized…

October 2, 2025
  • Bitcoin News

Bitcoin Still Undervalued, JPMorgan Forecasts Rally to $165,000

JPMorgan says Bitcoin (BTC) is undervalued compared to gold and could rise to $165,000, giving…

October 2, 2025
  • 24/7 Cryptocurrency News

Breaking: CME to Launch 24/7 Crypto Futures Trading Amid Rising Institutional Demand

Derivatives exchange CME Group has announced plans to begin offering 247/7  crypto futures and options…

October 2, 2025