FDIC Unveils 175 Crypto-Related Bank Documents: Resistance, Reassessment, and a New Path

The Federal Deposit Insurance Corporation (FDIC) has publicly released 175 encrypted-related bank regulatory documents, providing a glimpse into the challenges and regulatory hurdles faced by banks seeking to engage in crypto-related businesses. The documents, released on the FDIC's official website, include correspondence from banks and regulatory agencies, revealing a generally resistant stance towards banks' requests to participate in the crypto market.

The documents show that banks' attempts to engage in crypto businesses have often encountered resistance from regulatory agencies. This includes repeated requests for additional information, long periods of non-response, or direct instructions to halt all crypto and blockchain activities. As a result, many banks have abandoned their related efforts.

Acting Chairman Travis Hill stated that the FDIC is reassessing its regulatory approach to crypto-related businesses. The FDIC plans to replace the 2022 regulatory guidance (FIL 16-2022) to provide banks with a compliant path to engage in crypto businesses while ensuring safety and soundness. Additionally, the FDIC will participate in the President's Working Group to coordinate regulatory discussions on the digital asset market following the President's executive order on January 23rd.

The release of these documents comes as the crypto industry continues to evolve and gain attention from regulatory bodies worldwide. As the market grows, so does the need for clear and consistent regulatory guidance to ensure the safety and soundness of financial institutions engaging in crypto-related activities.