Regulators vs. Crypto: FDIC Signals New Approach With Massive Document Dump

The Federal Deposit Insurance Corporation (FDIC) released 175 documents on Feb. 5, detailing its oversight of banks engaged in crypto-related activities

The Federal Deposit Insurance Corporation (FDIC) released 175 documents on Monday, detailing its oversight of banks that are interested in engaging in crypto-related activities, a move that Acting Chairman Travis Hill said is part of a broader effort to increase transparency.

The FDIC’s move comes amid broader scrutiny of financial regulators limiting market access, an issue that was highlighted during a Senate Banking Committee hearing on debanking on Monday.

After assuming his role, Hill initiated a review of all supervisory communications regarding crypto banking and explained the timing of the document release.

Previously, the FDIC released 25 so-called “pause” letters that were sent to 24 institutions interested in pursuing crypto- or blockchain-related activities.

The FDIC’s actions align with broader concerns about financial regulators limiting market access, an issue that was highlighted during a Senate Banking Committee hearing on debanking on Monday.

He stressed that access to financial services is a fundamental right, adding that “the message is crystal clear: no regulator, and no bank, is above the principles of fairness and market access.”

Looking forward, Hill stated that the FDIC is reevaluating its regulatory framework for crypto banking, including replacing Financial Institution Letter (FIL) 16-2022 and creating a structured pathway for banks to engage in blockchain-related activities while maintaining safety and soundness.