In a move toward greater transparency, the Federal Deposit Insurance Corporation (FDIC) has released more than 100 documents related to the controversial “debanking” of cryptocurrency companies and individuals.
The disclosure, announced in a press release on February 5, follows increasing scrutiny over how U.S. financial regulators have handled crypto-related banking relationships.
The 175 documents provide insight into the FDIC’s oversight of banks that have either engaged in or expressed interest in crypto-related activities.
The release comes on the same day the U.S. Senate Banking Committee began hearings on the impact of debanking and just ahead of a court-ordered deadline of February 7 for their publication.
The issue of crypto debanking, sometimes called “Chokepoint 2.0,” has been a hot topic in recent months. Critics argue that regulatory agencies, including the FDIC and the U.S. Securities and Exchange Commission (SEC), have been systematically discouraging banks from working with crypto firms.
FDIC Acting Chairman Travis Hill has been vocal about his concerns regarding the agency’s past stance on crypto assets. Reflecting on the FDIC’s approach, he stated: “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.“
Among the released documents is correspondence with 24 financial institutions, shedding light on how the FDIC responded to banks interested in crypto-related services. The findings reveal a pattern of:
- Delays in responses, sometimes lasting months.
- Requests for additional information that prolonged decision-making.
- Directives advising banks to pause, suspend, or completely avoid crypto-related activities.
While these documents don’t paint the full picture, they provide critical insight into how regulators have approached the crypto industry.
The FDIC’s decision to release the documents has been met with both relief and praise from lawmakers and industry advocates.
Senator Cynthia Lummis, a well-known supporter of cryptocurrency regulation, took to X (formerly Twitter) to commend the move: “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.”
In light of the concerns raised by these findings, the FDIC is reassessing its policies regarding crypto banking. Key changes moving forward include: Replacing Financial Institution Letter (FIL) 16-2022, which has been used to guide banks on crypto-related matters, Developing a clearer regulatory framework for financial institutions interested in the crypto sector and Collaborating with President Trump’s working group on digital assets to establish updated guidelines.