The American federal agency is preparing to revise the guidelines that have so far hindered the entry of banking institutions into the cryptocurrency sector.
The Federal Deposit Insurance Corporation (FDIC) is set to amend its guidelines to allow banks to operate with cryptocurrencies. This shift comes after the release of 790 pages of internal documentation, revealing how, until now, banking institutions have been systematically discouraged from entering the crypto market.
Travis Hill, Interim President of the FDIC, publicly acknowledged the agency’s past resistance:
“The documents that we are releasing today show that requests from these banks were almost universally met with resistance, ranging from repeated requests for further information, to multi-month periods of silence as institutions waited for responses, to directives from supervisors to pause, suspend, or refrain from expanding all crypto or blockchain-related activity.”
Caitlin Long, CEO of CustodiaBank, highlighted several instances of pressure from the FDIC:
“The FDIC did pressure some banks not to take Us dollar deposits from crypto companies.”
The new direction taken by the FDIC could allow banking institutions to operate in the crypto sector without the need for prior regulatory approval.
Brian Moynihan, CEO of Bank of America, recently confirmed that banks are ready to actively participate in the digital asset market as soon as the regulatory framework allows it.
The FDIC’s shift also comes following a lawsuit filed by Coinbase, which had requested greater transparency on regulatory actions through the Freedom of Information Act. Paul Grewal, Coinbase’s Chief Legal Officer, emphasized how the documents confirmed that the US government’s attempt to hinder the digital asset industry was not a conspiracy theory.
