The post Trump’s FDIC Chief Rethinks Crypto Guidance as U.S. Senators Probe Debanking appeared on BitcoinEthereumNews.com.

As U.S. senators prepared to gather for a hearing about U.S. debanking of crypto clients, the interim chief of the Federal Deposit Insurance Corp. said his agency is overhauling its digital assets supervision and revealed more correspondence on Wednesday in which FDIC officials steered banks away from cryptocurrency business. Travis Hill, the acting FDIC chairman tapped by President Donald Trump, has thrown open more of the agency’s past documents and said the U.S. banking regulator will be reconsidering its previous crypto guidance that deliberately kept banks an arm’s length away from what had been seen as the unregulated volatility of crypto. The past letters between the FDIC and bank have been the focus of a court Freedom of Information Act battle between Coinbase and the agency, in which the courts had directed the regulator to share more information. Meanwhile, Hill said the FDIC will be “providing a pathway for institutions to engage in crypto- and blockchain-related activities while still adhering to safety and soundness principles,” according to a statement issued before the start of a Wednesday hearing in the Senate Banking Committee on this topic. “I directed staff to conduct a comprehensive review of all supervisory communications with banks that sought to offer crypto-related products or services,” he said. “While this review remains underway, we are releasing a large batch of documents today, in advance of a court-ordered deadline of Friday.” Hill, who will run the FDIC until Trump puts forward a permanent candidate, characterized the agency as deliberately making it impossible for banks to handle crypto business. “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…

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Filed under: News - @ February 6, 2025 3:21 am