U.S. Regulation

FDIC Releases Documents Involving Crypto-Related Activities

The Federal Deposit Insurance Corporation (FDIC), which oversees banks in the U.S., has issued 790 pages of new documents regarding banks that wish to provide cryptocy services to their consumers. The FDIC stated in a document that when banks and other institutions requested cryptocy services, they were frequently greeted with delays, additional information demands, and stop letters.

The new document includes information from 24 banks that had previously been released. It also has additional correspondence from other banks asking for permission to offer crypto services. FDIC Acting Chairman Travis Hill stated that the agency is now reviewing how it regulates crypto-related operations, indicating a significant shift in its attitude to the crypto business.

Coinbase submitted two Freedom of Information Act (FOIA) requests in October 2024 seeking FDIC information relating to the debanking of crypto companies as part of Operation Chokepoint 2.0. One of the inquiries sought data from cryptocy-related firms about a 15% cap on bank deposits. In December 2024, a U.S. court released the first batch of FDIC documents, which included several heavily redacted pause letters sent to banks offering crypto services.

After the documents were made public, U.S. Judge Ana Reyes criticized the FDIC for the excessive redactions and ordered the agency to provide clearer documents. She said that the FDIC “cannot simply blanket redact everything that is not an article or preposition,” calling the redactions a “lack of good-faith effort” in her December 12 ruling.

Terron Gold

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