US authorities really did demand that banks cut ties with crypto companies. Here’s the evidence

Initially, information about the government’s fight against the crypto industry was shared by Marc Andreessen of Andreessen Horowitz. He visited Joe Rogan’s podcast, where he directly stated that the administration of US President Joe Biden is using financial isolation as a weapon.

According to him, over the past four years, about thirty top entrepreneurs in the blockchain sector have lost access to banks.

The topic was picked up by other representatives of the coin niche. As their additions made clear, in reality, many more people were cut off from banks, and all this was done in the dark and through the use of unofficial communication channels.

As Gemini crypto exchange co-founder Cameron Winklevoss noted, there were more than ten such cases in his company alone, including a similar situation with his brother.

How the authorities fight crypto

The details of the US government’s actions were revealed thanks to the current legal proceedings between representatives of the crypto industry and the Federal Deposit Insurance Corporation (FDIC). It turns out that this agency was engaged in unofficial influence on banks, which were forced to stop working with crypto companies.


It should be noted that banks have this right because they are private businesses and can choose the clients they work with. Therefore, government officials probably hoped that this would not arouse suspicion. However, when such cases became widespread, it became obvious that someone was behind them.


As Cointelegraph reports , the documents were released by the United States District Court for the District of Columbia and confirm that Federal Deposit Insurance Corporation officials sent so-called “stop letters” to banks whose names were obscured.

The letters were sent in 2022. In them, FDIC representatives demanded “a pause in all activity related to the cryptocurrency industry” amid uncertainty about the regulation of the industry and the rules for their work.

Here is a quote on this matter.

We urge you to suspend all crypto-related activities. The FDIC will notify all banks under its supervision once it has made a decision on the requirements for their participation in crypto-related activities, including the need to file regulatory documents.

Here is the corresponding letter, which contained this instruction. As already mentioned, the address is hidden here, but we are probably talking about top American banks.


It is important to note that the lack of clear rules for regulating the crypto industry is the merit of the SEC. Its current chairman, Gary Gensler, has been repeatedly asked to provide new rules for transparent regulation of the coin industry, but he recommended following the Securities Act from the first half of the last century.


In retrospect, it can be assumed that these two events were connected. That is, regulators did not want to ensure transparency in the work of crypto companies, and other agencies used this condition as a reason to stop servicing them by banks.

The publication was commented on by the chief legal adviser of the crypto exchange Coinbase Paul Grewal. According to him, the documents confirm the fact of the authorities’ direct fight against the digital asset niche. Here is the remark cited by Coindesk .

The emails prove that this was no conspiracy theory, no idle speculation, no musings by a paranoid industry. This was a deliberate plan by the FDIC, which they carried out without hesitation to deprive the legitimate American banking industry of its services. And that should give everyone serious pause.

The documents show that some banks agreed to the proposed terms before the interaction began, meaning that the crypto companies simply could not find a bank to conduct financial transactions. In other cases, FDIC representatives warned banks against further expanding existing cooperation or directly asked to suspend it until the agency completed its review of the relevant request.

Here is another example of an appeal in which one can see the shadow of a threat.

We expect you to answer these and any subsequent questions properly (prior to implementation) to ensure the safe and secure operation of the bank.

Most importantly, some of the letters indicated that the FDIC leadership was unsure at all what documents would be required for banks to work with blockchain companies, meaning the prospects for such a thing were initially questionable.

Grewal said the crypto industry will next request the original, unedited versions of the letters under the Freedom of Information Act, so they can find out which banks the FDIC contacted and what services they were asked to stop providing.

Grewal continues.

Even after federal courts have repeatedly ordered the FDIC to provide this information, they continue to drag their feet. We believe it is time to end this.


The developments clearly show that the US government's fight against the coin industry was not a figment of the imagination. It appears to have been carefully orchestrated by the Biden administration and supplemented by the SEC. Of course, someone must be held accountable for this.


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