Coinbase has uncovered over 20 cases where the Federal Deposit Insurance Corporation (FDIC) reportedly advised U.S. banks to avoid engaging with cryptocurrency-related services. This revelation follows Coinbase’s Freedom of Information Act (FOIA) requests, seeking transparency from the FDIC about its role in the ongoing regulatory crackdown on crypto in U.S. banking.

According to Coinbase’s Chief Legal Officer, Paul Grewal, these instances show a concerning trend. In a recent post on X, Grewal highlighted that the FDIC had directed banks to “pause,” “refrain from providing,” or “not proceed” with crypto-banking services. Grewal argued that these actions signify an agency working “behind a bureaucratic curtain,” preventing Americans from accessing crypto through traditional financial avenues.

Court documents reveal that the FDIC flagged numerous instances where it questioned banks’ risk assessments on crypto services, urging them to hold off until further review. In one case, despite the bank’s detailed follow-up documentation, the FDIC insisted that no expansion should occur until a thorough evaluation was completed.

Coinbase has emphasized the importance of transparency, especially in light of the upcoming U.S. presidential election. As the regulatory landscape may shift depending on who wins, Coinbase has publicly stated its willingness to work with either administration to shape the future of crypto regulation in the country.

With this case shedding light on regulatory influence over banking, Coinbase’s findings may fuel debate over the extent of government control and transparency in the financial industry.