US FDIC Releases 175 Critical Crypto Banking Regulations

2 mins mins

Key Points:

The FDIC publishes 175 documents detailing the supervision of banks in crypto-related activities.
Most banks encountered resistance, including suspensions and long delays, in pursuing crypto banking.
The FDIC plans to replace 2022 guidelines with new regulations to support compliant crypto businesses.

The U.S. Federal Deposit Insurance Corporation (FDIC) has released 175 documents detailing its supervision of banks involved in or attempting to engage in crypto banking regulations.

FDIC Unveils 175 Documents on Crypto Banking Regulations

Acting Chairman Travis Hill highlighted that these documents include communication records between the FDIC and banks that had previously requested permission to engage in crypto banking regulations. The release follows the FDIC’s earlier publication of 25 suspension letters sent to 24 banks, warning them of regulatory issues related to cryptocurrency operations.

According to the documents, most banks faced significant hurdles in their attempts to venture into crypto banking regulations. Requests for crypto business were often met with regulatory resistance, including repeated demands for additional information, long periods of non-response, and direct instructions to suspend all cryptocurrency and blockchain-related activities. This has led many banks to abandon their attempts to engage with the crypto sector.

FDIC to Revise Crypto Banking Guidelines for Compliance

Hill noted that the FDIC is actively re-evaluating its crypto banking regulations. The agency plans to replace its 2022 regulatory guidelines (FIL 16-2022) with updated rules to provide banks with a clear, compliant path to enter the crypto market while ensuring financial security safely.

The FDIC will also collaborate with the presidential working group on digital assets, as outlined in the January 23 executive order. This cooperation aims to strengthen regulatory frameworks for the growing digital asset market, ensuring that banks can securely and responsibly engage in crypto banking regulations.

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