- Banks encountered regulatory resistance, experiencing delays, additional information requests, and enforced suspensions of their blockchain and crypto initiatives.
- FDIC plans to replace 2022 guidelines with updated crypto banking rules, providing banks compliance pathways and secure operations.
The U.S. Federal Deposit Insurance Corporation (FDIC) has released 175 documents that record its supervision of banks involved in crypto banking regulations. The documents include internal communications between the FDIC and banks that requested permission to engage in crypto-related activities. Many banks encountered obstacles when they attempted to follow crypto banking rules.
Furthermore, they experienced delays in receiving responses, additionally, they were asked to provide more details, and moreover, they received instructions to halt cryptocurrency operations. The FDIC published these records following its previous release of 25 suspension letters sent to 24 banks regarding regulatory issues in cryptocurrency operations.
Banks that wished to enter the crypto sector faced repeated hurdles in their efforts to comply with existing guidelines. The published documents show that banks often had to wait for extended periods and submit multiple rounds of information before receiving any reply from the FDIC, as we have previously reported on ETHNews.
Furthermore, banks received direct orders to stop blockchain-related activities, additionally, they experienced suspensions of their crypto operations, and moreover, they had to abandon certain projects altogether.
In response, the FDIC announced plans to replace the 2022 guidelines with updated regulations. The revised rules will offer banks a clearer route to operate in crypto markets while preserving safety.
Furthermore, the agency has stated that it will work with a presidential working group on digital assets, additionally, it will coordinate with other federal bodies, and moreover, it will assess current practices to improve oversight.
The new regulatory approach is expected to provide a clear and structured path for banks that wish to participate in crypto banking. Banks will receive updated guidance that explains the requirements they must meet to offer services related to digital assets.
Furthermore, the collaboration with the presidential working group on digital assets will help ensure that the updated rules reflect current realities. Additionally, the review process will consider banks’ operational needs, and moreover, it will aim to avoid unnecessary disruptions in banking services.
This effort seeks to maintain a clear separation between technology development and the regulation of banks’ operational activities.
