On February 5, the FDIC released 175 documents concerning its supervision of banks involved in cryptoasset-related activities. This release of documents, announced by Acting Chairman Travis Hill, was part of a commitment to transparency under the Freedom of Information Act. Hill has previously criticized the FDIC’s restrictive stance on blockchain and cryptoassets. The documents included correspondence with banks interested in cryptoasset activities, highlighting the “resistance” these institutions faced, such as requests for additional information, periods of silence, and directives to halt cryptoasset-related activities. Hill noted this resistance led many banks to abandon their cryptoasset initiatives.
Moving forward, Hill stated that the FDIC will reassess its supervisory approach to provide a clearer pathway for banks to engage in cryptoasset activities while maintaining safety and soundness. As previously covered by InfoBytes, the FDIC plans to collaborate with the President’s Working Group on Digital Asset Markets to achieve this goal. These letters were also revealed previously in ongoing litigation in the U.S. District Court for the District of Columbia (covered by InfoBytes here).
