The FDIC today released 175 documents related to its supervision of banks that engaged in cryptocurrency activities. Critics have accused banking regulators under the Biden administration of pressuring banks to deny services to customers involved with digital assets. The release of the documents came ahead of a Senate Banking Committee hearing on alleged “debanking” by banks.
In a statement, FDIC Acting Chairman Travis Hill said the agency sent 25 “pause” letters to 24 institutions interested in pursuing activities involving crypto or other digital assets. The letters show that “requests from these banks were almost universally met with resistance.”
“Both individually and collectively, these and other actions sent the message to banks that it would be extraordinarily difficult — if not impossible — to move forward,” Hill said. “As a result, the vast majority of banks simply stopped trying.”
Hill said he has directed FDIC staff to conduct a comprehensive review of all supervisory communications with banks that sought to offer crypto-related products or services. That review is currently underway.
