The Federal Deposit Insurance Corporation released 175 documents about how it monitors banking institutions that serve crypto clients during growing bank scrutiny. The FDIC published its documents to follow a court deadline right before the Senate Banking Committee discussed crypto banking on Feb. 5.
The FDIC released documents that show how it worked with 24 financial organizations about their involvement in crypto businesses. Their records show the agency prolonged response times while collecting new information and made orders that required banks to slow down or stop crypto operations.
FDIC Revises Crypto Banking Rules
Stakeholders in the industry identify this discovery as evidence for their concerns about a coordinated 2.0 version of Chokepoint which disrupts crypto companies’ banking connections.FDIC Acting Chairman Travis Hill accepts existing concerns by telling everyone FDIC will revise its current methods.
To develop better rules for digital asset bank services the FDIC plans to update Financial Institution Letter (FIL) 16-2022. The Federal Deposit Insurance Corporation will team up with the digital asset working group under Trump’s presidency to create updated rules.
Senator Cynthia Lummis praised Federal Deposit Insurance Corporation decision through her statement about this new development. Crypto supporters believe that making banking rules clear will protect businesses from government control and help them get banking services equally.
“I am thrilled the FDIC acted swiftly & efficiently to release these documents. I want to thank Chairman Hill and POTUS for your commitment to government transparency! We are putting an END to Chokepoint 2.0.”
The upcoming Senate hearings will assess how the Federal Deposit Insurance Corporation oversees crypto banking restrictions and may shape upcoming rules for this sector. These released documents help advance discussions about how digital assets should relate to U.S. banking standards.
