New documents from the FDIC reveal a clear effort by the federal government to de-bank cryptocurrency companies. This confirms long-held suspicions. As of December 6, 2024, it’s evident that Operation Chokepoint 2.0 was real.

After the collapse of three crypto-friendly banks—Signature, Silvergate, and Silicon Valley Bank—in March 2023, the government took action. They aimed to restrict banking services to the crypto sector. The crypto community, led by investor Nic Carter, has voiced concerns about de-banking for a while. However, solid proof was lacking until now.

Internal communications from the FDIC became public after a lawsuit from a research firm, History Associates Inc., on behalf of Coinbase.

The released documents, heavily redacted, showed that the FDIC instructed banks to stop considering products and services related to digital assets. Jesse Hamilton from CoinDesk reported on this.

One of the letters stated, “We respectfully ask that you pause all crypto asset-related activity.” The FDIC promised to inform banks later about what was expected regarding crypto activities.

For a long time, the FDIC and other regulators denied pressuring the three banks to stop servicing crypto companies. Many of these companies faced challenges after the FTX collapse in late 2022. But these letters tell a different story.

Grewal, a spokesperson, said, “These letters show that this was no conspiracy theory. There was a clear plan from the FDIC to deny banking services to a legal American industry. That should raise concerns.”

The issue of de-banking has gained attention recently, especially after Marc Andreessen discussed Operation Chokepoint 2.0 on Joe Rogan’s podcast. During a recent House Committee hearing, several crypto leaders testified about their struggles to access banking services. The letters indicated that the FDIC demanded extensive compliance information but didn’t clarify what banks needed to do to approve crypto businesses. Some letters suggested that the agency wasn’t even sure about the necessary regulatory filings.

Grewal announced that Coinbase intends to petition the court to release the documents without redactions.

Critics argue that access to financial services is a fundamental right. They believe the federal government shouldn’t be able to effectively ban legal businesses. Operation Chokepoint 2.0 refers to a policy from the Obama Administration aimed at limiting financial services to payday lenders, gun sellers, and other “undesirable” businesses.

It’s now clear that the issue of de-banking affects not just cryptocurrency but also reflects the current administration’s stance on various sectors.