8 months ago
58
On February 5, 2025, the Federal Deposit Insurance Corporation (FDIC) made a significant move by releasing 175 documents related to its supervision of banks involved in crypto-related activities. This release marks a pivotal moment in the FDIC’s approach to transparency and regulation in the rapidly evolving world of digital assets.
A Shift in Perspective
Acting Chairman Travis Hill, who has previously criticized the FDIC’s stance on crypto assets and blockchain technology, spearheaded this initiative. Hill acknowledged that the FDIC’s past approach had created a perception that the agency was not open to institutions interested in blockchain or distributed ledger technology. To address this, Hill directed a comprehensive review of all supervisory communications with banks seeking to offer crypto-related products or services.
The Document Release
The documents released include additional correspondence with 24 institutions that had previously received “pause” letters, as well as communications with other banks. These documents reveal a pattern of resistance from the FDIC, ranging from repeated requests for further information to prolonged periods of silence and directives to halt crypto-related activities. This resistance effectively discouraged many banks from pursuing their crypto ambitions.
Commitment to Transparency
Hill emphasized that the decision to release these documents, ahead of a court-ordered deadline, reflects the FDIC’s commitment to transparency. This move goes beyond the requirements of the Freedom of Information Act (FOIA) and aims to fulfill the spirit of the FOIA request. By making these documents public, the FDIC hopes to shed light on its supervisory practices and foster a more open dialogue about the future of crypto regulation.
Looking Ahead
The FDIC is actively reevaluating its supervisory approach to crypto-related activities. This includes replacing Financial Institution Letter (FIL) 16–2022 and creating a pathway for banks to engage in crypto and blockchain activities while adhering to safety and soundness principles. The FDIC also plans to collaborate with the President’s Working Group on Digital Asset Markets, established by the President’s January 23, 2025, Executive Order.
Conclusion
The release of these documents is a significant step toward greater transparency and a more balanced regulatory approach to crypto-related activities. As the FDIC continues to refine its policies, it remains committed to ensuring that banks can safely and effectively navigate the complexities of the digital asset landscape.
Author: Trent V. Bolar, Esq. (LinkedIn Profile)
Disclaimer: All content in this article is intended for general information only and should not be construed as legal advice. Information in this article may not constitute the most up-to-date legal or other information. The content in this article is provided “as is,” and no representations are made that the content is error-free. Use of, and access to, this article or any of the links or resources contained within do not create an attorney-client relationship between the reader, user, or browser and the author. All trademarks, logos, and service marks used in this article are the property of their respective owners. The use of such trademarks does not imply any affiliation with or endorsement of this article.
© 2025 Trent V. Bolar, Esq. | All rights reserved.
English (US) ·