FDIC Acting Chair Says Crypto-Related Regulations for Banks Will Be Revamped

Contact Your Elected Officials
The Epoch Times Header

The agency releases 175 documents that demonstrate history of regulatory resistance toward financial institutions pursuing the new currencies.

The Federal Deposit Insurance Corporation (FDIC) released 175 documents on Wednesday that reveal a history of regulatory resistance to crypto-related products and services.

Acting Chairman Travis Hill, who has been openly critical of the FDICโ€™s stance on cryptocurrency and blockchain, said in a statement that the agency is reassessing its approach.

โ€œPreviously, the FDIC released 25 so-called โ€˜pauseโ€™ letters sent to 24 institutions interested in pursuing crypto- or blockchain-related activities,โ€ Hill said.

The documents disclosed internal communications showing that banks were โ€œalmost universallyโ€ met with extensive requests for further information, prolonged silence from regulators, and, in many cases, outright directives to suspend their crypto-related activities.

The acting chairman said these supervisory practices had contributed to a perception that the FDIC was effectively blocking any institutional involvement in blockchain or distributed ledger technology.

โ€œBoth individually and collectively, these and other actions sent the message to banks that it would be extraordinarily difficultโ€”if not impossibleโ€”to move forward,โ€ Hill stated.

The FDICโ€™s review, initiated under Hillโ€™s leadership, marks a significant departure from the agencyโ€™s prior approach.

โ€œUpon becoming Acting Chairman, I directed staff to conduct a comprehensive review of all supervisory communications with banks that sought to offer crypto-related products or services,โ€ he said in the release.

โ€œOur decision to release these documents reflects a commitment to enhance transparency, beyond what is required by the Freedom of Information Act (FOIA), while also attempting to fulfill the spirit of the FOIA request.โ€

He emphasized that the goal moving forward is to provide a clear regulatory framework that allows banks to engage in crypto-related activities while maintaining principles of safety and soundness.

As part of this shift, the FDIC plans to replace the Financial Institution Letter (FIL) 16-2022, released under the Biden administration, which mandated that banks notify the agency before engaging in any crypto-related activities.

That letter cited risks associated with crypto, including concerns over financial stability and liquidity and compliance with consumer protection laws. The FDICโ€™s latest stance, by contrast, suggests a move toward balancing risk management with financial innovation.

Byย Chase Smith

Read Full Article on TheEpochTimes.com

The Epoch Times
The Epoch Timeshttps://www.theepochtimes.com/
Tired of biased news? The Epoch Times is truthful, factual news that other media outlets don't report. No spin. No agenda. Just honest journalism like it used to be.

Rise by the Conspiracy Theory, Fall by the Conspiracy Theory

The uproar in the MAGA world over the failure to release the Jeffrey Epstein client list should be a cause for serious concern for President Trump.

Liberal Democrat Content Creators are Despicable Defamationers

What should Christian conservatives do when confronted with false information to the point of bearing false witness against someone like President Trump?

Ben Shapiro Warning Me Not to Listen to InfoWars Makes Me Want to Listen 10x Harder

This rant from Ben Shapiro reveals more about him and his low opinion of his audience to whom he peddles his slop than it does about its target, Alex Jones.

Epsteinโ€™s Aftermath: Planes, Blames, and Autocrats

There are so many real, honest great journalists reporting the news on the internet these days that some really good content gets overlooked.

Why the Trump Administration is Sitting on the Epstein Files

President Trump, AG Bondi, and FBI Dir. Patel have the advantage over us in that they see the big overall picture when it comes to the Epstein List.

Justice Department Requests Data on Criminal Illegal Immigrants in California Jails

DOJ requested data on incarcerated illegal immigrants from sheriffs in CA counties, including reasons for arrests or convictions and scheduled release dates.

Columbia University Announces Commitment to Combating Anti-Semitism

Columbia University will put in place several measures to fight anti-Semitism on its campuses, the institutionโ€™s acting president, Claire Shipman, said.

Americaโ€™s Biggest Medical Facility for Transgender Youth Is Shutting Down

Childrenโ€™s Hospital Los Angeles, the nationโ€™s largest provider of gender procedures for youth identifying as transgender will shut down its program.

More Than 1 Million Illegal Immigrants Have Self-Deported, Says Senior White House Official

More than 1 million illegal immigrants have self-deported since President Donald Trump took office according to Stephen Miller.

Whatโ€™s Behind the USโ€“Canada Lumber Feud?

Industry group, U.S. Lumber Coalition, argues that Canadaโ€™s wood products, which receive government subsidies, are sold at an artificially low price.

Trump Undergoes Medical Exam After Swelling in Legs

President Trump underwent a medical evaluation after swelling in his lower legs and bruising on his hands but is in good health, according to physician.

Top HHS Nominee Opposes Transgender Treatments for Children

President Trumpโ€™s nominee for a top post at HHS told senators he opposes giving drugs such as puberty blockers to children experiencing gender dysphoria.

Trump Says US Very Close to Trade Agreement With India, EU Deal Possible

President Trump said that the United States is โ€œvery closeโ€ to reaching a trade agreement with India, adding that a deal with EU is also possible.
spot_img

Related Articles