FDIC releases documents involving Crypto-Related Activities

The Federal Deposit Insurance Corporation (FDIC), which oversees banks successful the U.S., has issued 790 pages of caller documents regarding banks that privation to supply cryptocurrency services to their consumers.

The FDIC stated successful a papers that erstwhile banks and different institutions requested cryptocurrency services, they were often greeted with delays, further accusation demands, and halt letters.

The caller papers includes accusation from 24 banks that had antecedently been released. It besides has further correspondence from different banks asking for support to connection crypto services.

FDIC Acting Chairman Travis Hill stated that the bureau is present reviewing however it regulates crypto-related operations, indicating a important displacement successful its cognition to the crypto business.

Coinbase submitted 2 Freedom of Information Act (FOIA) requests successful October 2024 seeking FDIC accusation relating to the debanking of crypto companies arsenic portion of Operation Chokepoint 2.0. One of the inquiries sought information from cryptocurrency-related firms astir a 15% headdress connected slope deposits.

In December 2024, a U.S. tribunal released the archetypal batch of FDIC documents, which included respective heavy redacted intermission 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 bureau to supply clearer documents. She said that the FDIC “cannot simply broad redact everything that is not an nonfiction oregon preposition,” calling the redactions a “lack of good-faith effort” successful her December 12 ruling.

Also Read: Sen. Lummis Vows to Investigate Operation Chokepoint 2.0 Scandal