The US Federal Deposit Insurance Corp (FDIC) is overhauling its crypto supervision policy amid growing pressure from senators to ease regulatory hurdles for banks dealing with cryptocurrencies.
The move comes as the Senate Banking Committee begins a hearing on the US regulators’ crypto debanking activity, with witnesses testifying about being blocked from bank relationships due to regulatory pressure. The FDIC’s acting chairman, Travis Hill, has announced that the agency will be reconsidering its previous guidance that kept banks at arm’s length from cryptocurrencies.
Hill stated that the agency is reviewing all supervisory communications with banks seeking to offer crypto-related products or services and plans to release a large batch of documents in advance of a court-ordered deadline. The FDIC will also provide a pathway for institutions to engage in crypto- and blockchain-related activities while adhering to safety and soundness principles.
The Senate hearing has been praised by some senators, including Chairman Tim Scott, who called the situation “disgusting and disheartening” and commended Hill’s actions. The hearing is part of a broader congressional review of debanking, with further hearings planned in both the House Financial Services Committee and the Senate Banking Committee.
The move is seen as a shift towards more regulatory clarity and leniency on crypto issues, following a series of high-profile cases involving Coinbase and other exchanges. As the US banking regulator, the FDIC plays a crucial role in setting the tone for banks’ engagement with cryptocurrencies.
Source: https://www.coindesk.com/policy/2025/02/05/trump-s-fdic-chief-rethinks-crypto-guidance-as-u-s-senators-probe-debanking