FDIC has requested a ‘pause’ on cryptocurrencies, not cancellation of banking services, unredacted letters show.

The Federal Deposit Insurance Corporation has asked banks to temporarily halt cryptocurrency-related activities in 2022 and 2023, but has not explicitly ordered them to stop providing banking services to cryptocurrency companies, Documents released Friday show.

The previously redacted letters, along with two newly released letters, do not appear to support the cryptocurrency industry’s claims that the FDIC has ordered financial institutions to “unbank” cryptocurrency companies. However, they show that the regulator has discouraged banks from offering services on public blockchains, and has asked at least one bank to refrain from implementing a new cryptocurrency-related product while the FDIC considers it.[s] This activity related to crypto assets.”

Twenty-three letters, addressed to several banks by the Federal Deposit Insurance Corporation (FDIC), were originally released last month as part of a court case between Coinbase counsel History Associates and the regulator. History partners It filed a lawsuit against the FDIC and the Securities and Exchange Commission in June To access documents related to the investigation conducted by regulators into Coinbase.

The names of banks, cryptocurrency products and blockchains remain withheld.

An FDIC spokesperson declined to comment on the newly issued letters.

Coinbase’s chief legal officer spoke to social media platform

Regarding the two new letters, the so-called pause letters, Coinbase CLO Paul Grewal said that “it is hard to believe their good faith when their cover is blown further every time we pull the string.”

He called on the next Congress to begin hearings on this issue.

Grewal and others have long seen the Biden administration do just that Participate in a coordinated effortdubbed Operation Choke Point 2.0, to stop the adoption of cryptocurrencies by traditional financial companies.

These so-called efforts get their name from Operation Choke Point, an Obama-era attempt that “choked” high-risk industries like payday lending, gambling and firearms from access to banking services.

Along with the unredacted letters, the Federal Deposit Insurance Corporation (FDIC) released Friday Published an internal memo Beginning in 2022, employees will be instructed on receiving, reviewing, and responding to notifications from banks participating in or considering engaging in cryptocurrency-related activities.

“The FDIC is aware of a number of institutions already engaging in cryptocurrency-related activities through prior communications, press reports, and examination activities, but has issued the order [Financial Institutions Letter] “To help fill the data gap related to this information,” the memo said.

“[C]Cryptocurrency-related activities may pose significant safety, security and consumer protection risks, as well as financial stability concerns, the memo said. “Furthermore, these risks and concerns are evolving because cryptocurrency-related activities are not yet fully understood.