FDIC releases documents related to supervision of crypto-related activities
The U.S. Federal Deposit Insurance Corporation (FDIC) on Wednesday released 175 documents detailing its supervision of banks involved in or seeking to engage in crypto-related activities.
"I have been critical in the past of the FDIC's approach to crypto assets and blockchain," acting Chairman Travis Hill said, adding that he has directed staff to conduct a comprehensive review of all supervisory communications with banks seeking to offer crypto-related products or services.
The nearly 800 pages made public, which have identifying details redacted, detail communications between the regulator and banks over their interest in crypto business.
In many cases, FDIC officials are asking banks for details on how they may engage with cryptocurrency while maintaining appropriate safeguards, or pressing for more robust disclosure of risks in crypto products for consumers under consideration.
The FDIC had previously released similar documents as part of an ongoing legal dispute with crypto exchange Coinbase, which had sued for documents amid complaints the regulator was discouraging banks from engaging with crypto firms.
The so-called "pause letters" the FDIC previously made public showed the regulator telling unidentified banks to pause dabbling in crypto, but did not show the agency ordering banks to refuse doing business with crypto firms.
Reporting by Manya Saini in Bengaluru; Editing by Leroy Leo, Editing by Franklin Paul