Coinbase News: FDIC Faces Criticism for Lack of Transparency in Crypto Crackdown Operation Chokepoint 2.0

Recent developments in the cryptocurrency space have thrown the spotlight on the Federal Deposit Insurance Corporation (FDIC), as Coinbase’s chief legal officer accuses the agency of being non-transparent about its role in Operation Chokepoint 2.0. Here’s a closer look at the ongoing saga.

FDIC Resists Transparency on Crypto’s Operation Chokepoint 2.0 — Coinbase CLO

The Federal Deposit Insurance Corporation (FDIC) is not transparent regarding its role in Operation Chokepoint 2.0, a period when crypto and tech firms were allegedly denied banking services under the Biden administration. Coinbase’s chief legal officer, Paul Grewal, called out the agency for repeatedly refusing to provide details about how it ensured that no documents related to the crackdown were destroyed. In a March 8 thread, Grewal expressed concern over FDIC’s representation in a hearing before the Court that the agency had conducted ‘due diligence’ to ensure that no documents were destroyed, but the agency failed to provide an example of the due diligence it conducted when requested by Coinbase.

Coinbase Hiring Spree: 1,000 Jobs Incoming As Crypto Regulations Improve

Coinbase is preparing for significant growth. CEO Brian Armstrong announced plans to add 1,000 new workers in the US by 2025. This decision comes as the nation’s cryptocurrency laws become more defined, providing greater assurance for businesses like Coinbase. Armstrong attributes the hiring spree to improved crypto laws under the Trump administration, which has created a more transparent environment for the sector. This is a significant shift from 2022 when the exchange had to lay off 1,100 workers due to tough market conditions.