The Federal Deposit Insurance Corporation (FDIC) has released 175 documents detailing its supervision of banks involved in crypto activities. This occurs amidst upcoming congressional hearings on banking practices.
FDIC Documents Expose Resistance to Crypto Banking Initiatives
According to the newly released documents, FDIC's interactions with banks interested in blockchain and crypto activities have been marked by delays, requests for additional information, and instructions to pause expanding crypto services. Acting FDIC Chairman Travis Hill noted that the documents show how requests from these banks were often met with resistance. Many institutions were forced to halt their initiatives after facing prolonged uncertainty and regulatory roadblocks.
Regulatory Environment Hinders Digital Asset Adoption
The documents underscore the challenges banks face when engaging with digital assets. In many cases, institutions experienced long delays in receiving responses or were instructed to suspend operations related to blockchain technology. Hill emphasized that these obstacles significantly complicated banks' attempts to move forward with their crypto initiatives.
Plans for Future Crypto Supervision and Collaboration
The results from the documents have driven the FDIC to review its legislation on crypto activities. Together with the President’s Working Group on Digital Asset Markets, the FDIC will construct a comprehensive framework to govern crypto activities.
The disclosed FDIC documents highlight the difficulties banks encounter in the realm of crypto due to regulatory barriers. These efforts illustrate an increased need to rethink regulations and adopt new approaches to meet the evolving financial landscape.
