Trump Ends Operation Chokepoint 2.0 — But Why Is the FDIC Still Hiding Data?

The FDIC is facing accusations of impeding transparency relating to alleged restrictions placed on banking services for cryptocurrency businesses under the Biden administration. Referred to as “Operation Chokepoint 2.0,” anecdotal reports suggest digital asset companies experienced unexplained bank account closures, sparking concerns about government intrusion. Coinbase CLO Paul Grewal alleges continued obfuscation from the FDIC despite calls for transparency, reflecting the Coinbase legal battle with the FDIC.

Simultaneous regulatory realignments contrast sharply with the FDIC’s resistance to disclosure. The OCC has relaxed its approach to crypto banking, and Trump has publicly committed to terminating restrictive regulations applied to crypto ventures. Despite these shifts and the rising criticism, Grewal insists the FDIC still withholds essential documentation needed to reveal their conduct in the past.

Coinbase Challenges FDIC’s Lack of Transparency

Initiating the Coinbase legal battle with the FDIC, Coinbase seeks to compel the agency to reveal data about Operation Chokepoint 2.0. Coinbase’s legal team has formally asked the FDIC to provide information on its procedures to guarantee no essential documents were eradicated, an attempt the agency seems to resist. Grewal pointed to the repeated non-compliance with requests for information.

They haven't gotten the message. Despite a huge week for crypto across the rest of the federal government, on this late Friday night over at @FDICgov staff still continue to resist basic transparency into Operation Chokepoint 2.0. A few stark examples: 1/5

— paulgrewal.eth (@iampaulgrewal) March 8, 2025

This resistance from the FDIC to be fully transparent increases discontent in the crypto sector. The industry views FDIC’s reluctance to give sworn testimony as withholding critical information. With digital assets increasing in adoption, crypto leaders emphasize crypto regulations transparency as essential for building trust in the sector. Lacking clarity, the industry is concerned about regulatory overreach reappearing.

Limited FOIA Compliance Raises More Questions

The FDIC’s handling of Freedom of Information Act (FOIA) requests faces scrutiny, notably the accusation of withholding comprehensive information. Grewal asserts that the agency delivered only isolated document excerpts, many irrelevant to central legal challenge questions. Moreover, 53 provided pages appeared heavily redacted or illegible, bolstering suspicion of hidden information.

This dispute’s reach exceeds just Coinbase. In March 2025, Coinbase submitted its own FOIA request to the Securities and Exchange Commission (SEC), seeking data regarding digital asset company investigations and enforcement. The results could reveal the breadth of regulatory targeting within the crypto sector over the past few years.

Future of Crypto Regulation and Transparency

The evolving regulatory environment around cryptocurrency highlights contrasting approaches among oversight bodies. While the OCC recently relaxed limitations on banks’ crypto engagements, the FDIC’s commitment to limited transparency has made it a notable exception in the evolving scene. Furthermore, Trump’s stated intention to terminate Operation Chokepoint 2.0 places an additional burden on regulators to reassess their past positions and adapt to possibly more permissive cryptocurrency policies.

The decision to exclude the FDIC and the Federal Reserve from current cryptocurrency regulatory discussions prompts considerations about the agency’s long-term impact on formulating digital asset governance. If organizations like the SEC and OCC progress towards well-defined regulations within the crypto space, the FDIC could experience mounting requirements to defend its historical measures and conform to a transformed financial context.

The Push for Greater Transparency

The FDIC’s hesitancy regarding data release about Operation Chokepoint 2.0 during the Coinbase legal battle with the FDIC has amplified worries within the sector concerning potential regulatory overreach coupled with deficient accountability. The expansion of cryptocurrency usage emphasizes the need for impartial regulations and increased precision. Coinbase, alongside related entities, actively advocates for transparency in an effort to limit actions that might target financial advancement.

Similar regulatory agencies have shifted their practices to adapt to cryptocurrency evolution, so the FDIC’s aversion to transparency represents a challenge. Comprehensive discovery processes are ongoing. The conclusions drawn regarding FDIC crypto regulations transparency might serve as standards for agency operations regarding cryptocurrencies moving forward.