WASHINGTON – In a shocking revelation, the Federal Deposit Insurance Corporation (FDIC) has released 175 documents related to its supervision of banks engaging in or seeking to engage in crypto-related activities.
The move comes as Acting Chairman Travis Hill expressed concerns over the FDIC’s approach to crypto assets and blockchain, stating that it has contributed to a perception that the agency is closed for business if institutions are interested in blockchain or distributed ledger technology.
Hill directed the staff to conduct a comprehensive review of supervisory communications with banks seeking to offer crypto-related products or services. As a result, the FDIC released a large batch of documents in advance of a court-ordered deadline, reflecting a commitment to enhance transparency.
The released documents show that requests from banks were almost universally met with resistance, ranging from repeated requests for further information to directives from supervisors to pause or suspend all crypto- or blockchain-related activity.
The actions sent a clear message to banks that it would be extremely difficult, if not impossible, to move forward with crypto-related activities, resulting in the vast majority of banks simply stopping their efforts.
The FDIC is now actively reevaluating its supervisory approach to crypto-related activities, including replacing Financial Institution Letter (FIL) 16-2022 and providing a pathway for institutions to engage in crypto- and blockchain-related activities while adhering to safety and soundness principles.
The agency also looks forward to engaging with the President’s Working Group on Digital Asset Markets established by the President’s January 23, 2025 Executive Order.
According to the released documents, the FDIC’s resistance to crypto-related activities has stifled innovation in the financial sector, with institutions facing significant hurdles in their efforts to engage with this rapidly evolving technology.
The FDIC’s move to release these documents marks a significant step towards transparency and accountability, as the agency seeks to revamp its approach to regulating crypto-related activities.
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Key Facts
- Agency: FDIC
- Category: Fraud & Financial Crimes
- Source: Official Source â†â€â€ÂÂ
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