Coinbase’s Paul Grewal to Testify on “Operation Chokepoint 2.0” Before US House Committee
Paul Grewal, Chief Investment Officer at Coinbase, has announced that he will be testifying before the U.S. House Committee on Financial Services on February 6. The hearing will center around the controversial “Operation Chokepoint 2.0,” an alleged government effort to hinder the cryptocurrency industry by pressuring banks to sever ties with crypto-related businesses.
Recent revelations have intensified the debate, as Coinbase recently obtained and reviewed unredacted letters from the Federal Deposit Insurance Corporation (FDIC). These letters reportedly discouraged banks from engaging with cryptocurrency firms, echoing tactics used in the original “Operation Chokepoint” over a decade ago, which targeted industries like payday lending.
Grewal aims to bring transparency to the issue, speaking on behalf of Coinbase, one of the largest cryptocurrency exchanges in the U.S. His testimony follows mounting concerns from industry leaders and lawmakers. Last month, Senator Cynthia Lummis of Wyoming accused the FDIC of destroying documents related to Operation Chokepoint 2.0 and warned of potential criminal referrals to the Justice Department.
Beyond Coinbase, prominent figures in the crypto space have voiced their opposition to the alleged operation. Ripple’s Chief Technology Officer, David Schwartz, has strongly condemned the practice, calling it a “despicable evil” that circumvents due process and should be “discarded in the dustbin of history.”
As regulatory scrutiny on the cryptocurrency industry continues to intensify, Grewal’s testimony could prove pivotal in shaping the future relationship between financial institutions and digital asset firms.
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