FDIC Releases Documents Related to Supervision of Crypto-Related Activities
PRESS RELEASE | FEBRUARY 5, 2025
FDIC Releases
Documents Related to Supervision of Crypto-Related
Activities
WASHINGTON - Today, the Federal Deposit Insurance
Corporation (FDIC) released 175 documents related to its supervision
of banks that engaged in, or sought to engage in, crypto-related
activities.
Acting Chairman Travis Hill issued the following
statement in connection with the release:
“I have been critical
in the past of the FDIC’s approach to crypto assets and blockchain.
As I said last March, the FDIC’s approach ‘has contributed to a
general perception that the agency was closed for business if
institutions are interested in anything related to blockchain or
distributed ledger technology.’
“Upon becoming Acting Chairman,
I directed staff to conduct a comprehensive review of all supervisory
communications with banks that sought to offer crypto-related products
or services. While this review remains underway, we are releasing a
large batch of documents today, in advance of a court-ordered deadline
of Friday. Our decision to release these documents reflects a
commitment to enhance transparency, beyond what is required by the
Freedom of Information Act (FOIA), while also attempting to fulfill
the spirit of the FOIA request.
“Previously, the FDIC released
25 so-called ‘pause’ letters sent to 24 institutions interested in
pursuing crypto- or blockchain-related activities. The documents
released today include (1) additional correspondence with those 24
institutions and (2) correspondence with additional institutions
beyond those 24. The documents that we are releasing today show that
requests from these banks were almost universally met with resistance,
ranging from repeated requests for further information, to multi-month
periods of silence as institutions waited for responses, to directives
from supervisors to pause, suspend, or refrain from expanding all
crypto- or blockchain-related activity. Both individually and
collectively, these and other actions sent the message to banks that
it would be extraordinarily difficult—if not impossible—to move
forward. As a result, the vast majority of banks simply stopped
trying.
“Looking forward, we are actively reevaluating our
supervisory approach to crypto-related activities. This includes
replacing Financial Institution Letter (FIL) 16-2022 and providing a
pathway for institutions to engage in crypto- and blockchain-related
activities while still adhering to safety and soundness principles.
The FDIC also looks forward to engaging with the President’s Working
Group on Digital Asset Markets established by the President’s January
23, 2025 Executive Order.”
A link to the FDIC’s FOIA Reading
Room is available here.
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