FDIC Unveils Crypto Debanking Secrets: Choke Point 2.0 Exposed

FDIC Releases Several Documents on Crypto Debanking and Choke Point 2.0

The Federal Deposit Insurance Corporation (FDIC) has released a tranche of documents detailing its previous directives and suppression of banks’ commerce with crypto businesses. This release is connected with Congressional investigations into Operation Choke Point 2.0.

Acting FDIC Chair Travis Hill wrote a statement accompanying this release, criticizing the agency’s anti-crypto initiatives while he was the Vice Chair and has since been promoted. Hill claimed that the FDIC’s approach to crypto assets and blockchain has contributed to a general perception that the agency was closed for business if institutions were interested in anything related to blockchain or distributed ledger technology.

The FDIC has a sordid history with the crypto community, spearheading a huge example of regulatory overreach under the alleged Operation Choke Point 2.0. Banks were directed to cut off cryptocurrencies, and we still don’t know the full extent of this campaign. However, FDIC Acting Chairman Travis Hill is seeking to change that by releasing 175 relevant documents.

FDIC document dump reveals ‘Chokepoint 2.0’ pressure on crypto banking

The Federal Deposit Insurance Corporation (FDIC) has released documents revealing extensive pressure on banks to limit their involvement with crypto-related activities, according to newly published records. The documents show the FDIC actively intervened in banks’ relationships with crypto companies, including directing banks to restrict US dollar deposit accounts for crypto firms.

The FDIC issued at least 24 “pause letters” to banks, instructing them to halt or reduce crypto-related services. These letters often cited safety and soundness concerns, stalling many institutions’ crypto initiatives. Caitlin Long, CEO of CustodiaBank, highlighted multiple instances of FDIC pressure.

“The FDIC did pressure some banks not to take US DOLLAR deposits from crypto companies,” Long said. The records indicate the FDIC issued at least 24 pause letters to banks, instructing them to halt or reduce crypto-related services. In one case, the agency forced a bank to reimburse customers for Bitcoin price losses, even though the bank’s program wasn’t designed to take on the price risk of cryptoassets.

The document release coincides with Scott Bessent’s appointment to the FDIC board, though his role