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- The FDIC has released 175 documents concerning its supervision of banks involved in crypto-related activities
- Acting Chairman Travis Hill has acknowledged past criticisms of the FDIC’s approach to crypto assets and blockchain
- The release aims to enhance transparency and provide insight into the FDIC’s supervisory processes regarding crypto activities
The Federal Deposit Insurance Corporation (FDIC) has made public 175 documents detailing its oversight of banks engaged in crypto-related activities. This move comes as part of the FDIC’s effort to increase transparency and shed light on its supervisory practices in the evolving crypto sector. In 2023, the FDIC warned that digital assets represented a potential risk to the financial stability of the United States, explaining its prior actions in warning banks off crypto-related users and clients.
A Commitment to Transparency
In a statement accompanying the release, Acting Chairman Travis Hill addressed previous critiques of the FDIC’s stance on crypto assets and blockchain technology, stating, “I have been critical in the past of the FDIC’s approach to crypto assets and blockchain.” Hill emphasized the importance of openness, noting that the decision to release these documents “reflects a commitment to enhance transparency, beyond what is required by the Freedom of Information Act (FOIA), while also attempting to fulfill the spirit of the FOIA request.”
The newly released documents encompass a range of supervisory communications, including:
- Correspondence with 24 institutions that received “pause” letters concerning their crypto-related activities.
- Additional communications with other banks expressing interest in or currently engaging in crypto services.
- These documents provide insight into the FDIC’s supervisory approach and the guidance provided to banks navigating the complexities of crypto-related services.
Previously, the FDIC had released 25 “pause” letters sent to 24 institutions interested in pursuing crypto- or blockchain-related activities. The current release builds upon that foundation, offering a more comprehensive view of the FDIC’s supervisory interactions.
FDIC Warned Banks Over Crypto Dealings
Hill noted that both individually and collectively, the actions taken by the previous FDIC regime “sent the message to banks that it would be extraordinarily difficult—if not impossible—to move forward” and that “As a result, the vast majority of banks simply stopped trying.”
The document release underscores the FDIC’s recognition of the rapidly evolving landscape of crypto-related activities and its commitment to providing clarity and guidance to financial institutions. By making these documents publicly available, the FDIC aims to foster a better understanding of its supervisory processes and support the safe and sound integration of crypto services within the banking sector.
