FDIC releases 790 pages of crypto letters amid regulatory shift

The Federal Deposit Insurance Corporation (FDIC) has released 790 pages of correspondence related to banks offering crypto services, revealing resistance to crypto initiatives.

According to the FDIC, banks' requests to offer crypto services often faced resistance, delays, and demands for more information.

The released documents included correspondence from 24 banking firms and additional firms seeking permission to offer crypto-related services.

Acting Chairman Travis Hill stated the FDIC is reevaluating its approach to crypto activities, signaling a shift in stance.

"Looking forward, we are actively reevaluating our supervisory approach to crypto-related activities,” Hill wrote.

This release follows Coinbase's Freedom of Information Act (FOIA) requests for FDIC documents related to the debanking of crypto firms.

A U.S. court previously released an initial set of FDIC documents in December 2024, which included redacted pause letters sent to banks offering crypto services.

Judge Ana Reyes criticised the FDIC for excessive redactions and ordered more transparent documents.

Wyoming Senator Cynthia Lummis accused the FDIC of destroying documents related to digital asset activities and threatened criminal referrals if evidence destruction by FDIC employees was discovered.

Acting Chair Travis Hill said the released documents show that requests from banks were almost universally met with resistance.

He stated that the FDIC is reevaluating its supervisory approach to crypto-related activities and plans to provide a pathway for institutions to engage in crypto- and blockchain-related activities while adhering to safety and soundness principles.