Coinbase CLO Paul Grewal Set to Testify at Critical Senate Hearing on “Operation Chokepoint 2.0”

The Senate Banking Committee has convened this hearing to examine allegations that regulatory agencies are deliberately limiting the access of crypto

Paul Grewal, Chief Legal Officer at Coinbase, is set to testify at a crucial Senate hearing centered around “Operation Chokepoint 2.0.” The Senate Banking Committee has convened this hearing to investigate allegations that regulatory agencies are deliberately limiting the access of crypto firms to banking services.

Grewal, a staunch advocate for transparent crypto regulations, is expected to speak out against what many in the industry view as unfair treatment.

The hearing comes amid growing concerns over regulatory actions that are allegedly targeting cryptocurrency operations. Documents obtained earlier through Freedom of Information Act (FOIA) requests showed that the FDIC might have instructed banks to limit their dealings with cryptocurrency-related businesses.

Detractors liken these actions to the controversial “Operation Chokepoint,” an earlier initiative that was accused of debanking legal yet politically disfavored businesses.

I’m testifying at the @FinancialCmte’s oversight hearing looking into the past clandestine and undemocratic campaign to cut off crypto from banking. On behalf of @Coinbase, I’m proud to help shed light on the unfair treatment of our industry and thank @FinancialCmte and… pic.twitter.com/TDIVu1cdW1

— paulgrewal.eth (@iampaulgrewal) February 3, 2025

Grewal will be joined by other industry executives, including Fred Thiel, CEO of MARA Holdings, who are expected to speak out against these alleged attempts to isolate crypto firms. Coinbase, for its part, has been vocal about the need for clear, upfront regulations, as opposed to what it sees as backdoor suppression tactics.

Coinbase’s Stance On Banking RestrictionsGre

wlaw has frequently spoken out against what he perceives as unjust regulations in the cryptocurrency sector. According to Coinbase, these banking rules stifle innovation, restrict consumer options, and drive more crypto activity overseas.

In his testimony, Grewal will likely highlight instances where regulatory agencies have pressured financial institutions to sever ties with crypto companies without providing a clear rationale.

Coinbase has repeatedly argued that the United States stands to lose out in the global crypto landscape due to its piecemeal approach to regulation.

Being one of the largest exchanges in the world, the exchange has had its fair share of encounters with regulators, including a lawsuit from the U.S. Securities and Exchange Commission (SEC). Grewal’s testimony will likely serve to further Coinbase’s advocacy for both fair and transparent regulatory treatment.

Under Operation Choke Point 2.0, @FDICgov politically targeted American business and pressured banks to sever ties with entire industries like crypto.

Next Congress @FinancialCmte stands ready to work with @realDonaldTrump to halt and reverse these practices, and finally… pic.twitter.com/SsE2C7Fp9l

— French Hill (@RepFrenchHill) November 20, 2024

The hearing could have major implications for the cryptocurrency industry in the United States. Lawmakers’ recognition of any regulatory overreach killing the sector could pave the way for fairer policies.

However, if the hearing largely concludes with more investigations but no significant actions, crypto companies may continue to face regulatory uncertainty and hurdles in banking access.

For now, the industry awaits Grewal’s testimony and the potential impact it may have on crypto in the U.S. moving forward.