FDIC Unveils Crypto Supervision Secrets; Banks Set for Green Light

The Federal Deposit Insurance Corporation (FDIC) has unsealed 175 documents revealing its supervision of banks involved in or interested in crypto-related services. The documents show that the FDIC made it difficult for banks to engage with digital assets and blockchain services, leading many to abandon their efforts. This revelation comes after a Freedom of Information Act (FOIA) request by Coinbase found dozens of instances where the FDIC asked banks to freeze crypto-related services.

In a significant development, the FDIC is planning to revise its guidelines to allow banks to engage in crypto activities. This shift is part of a broader change in the U.S. government's approach to digital assets under the Trump administration. If the rules are updated, banks would be able to operate within the crypto sector without needing prior regulatory approval. Bank of America CEO Brian Moynihan has confirmed that banks would actively participate in crypto transactions once the legal framework allows it.

In a recent Senate hearing, Acting FDIC Chairman Travis Hill confirmed that the agency is revising its crypto guidelines. Hill stated that the FDIC is reassessing its past approach to cryptocurrency regulations, which discouraged banks from engaging with crypto assets. The FDIC has also released internal documents detailing past communications with banks regarding cryptocurrency, following a lawsuit by Coinbase seeking transparency on regulatory actions affecting the industry.