On February 6, 2025, Coinbase Chief Legal Officer Paul Grewal testified before a U.S. congressional committee about regulatory overreach affecting crypto businesses. Grewal criticized regulators for creating barriers between banks and crypto firms, a sentiment echoed by Republican lawmakers. They accused the Biden administration of using vague regulatory threats to discourage banks from partnering with digital asset companies, which they argue stifles innovation and harms consumers. Contrarily, Democratic lawmakers highlighted the necessity of caution concerning the risks associated with the volatile crypto sector. Additionally, a favorable development for Coinbase arose as a judge criticized the FDIC's handling of a Freedom of Information Act request regarding its communications related to crypto. Following this, the FDIC expedited the release of relevant documents and committed to reviewing its supervisory communications about the crypto industry. This ongoing scrutiny reflects the industry's desire for clearer regulatory guidance and the potential for a more positive regulatory environment in the future.

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