The Federal Deposit Insurance Corporation (FDIC) is preparing to revise its guidelines for banks engaging in crypto-related activities, Barrons reported on Feb. 5.
The changes would allow banks to participate in certain crypto-related activities without requiring prior regulatory approval. Some banks have reportedly engaged with government officials to advocate for offering crypto custody services and exploring tokenized deposits as a potential alternative to stablecoins.
These tokenized deposits could integrate checking accounts with blockchain technology, signaling a shift toward adapting banking infrastructure to the evolving digital asset landscape.
New documents related to pause letters
On Feb. 5, the FDIC released 175 documents related to its oversight of banks involved in or seeking to engage in crypto services, highlighting a shift in the agency’s stance.
The documents pertain to the 2022 “pause letters,” which the FDIC sent to 24 financial institutions, advising them to halt or avoid offering crypto-related services.
In a statement, FDIC acting chairman Travis Hill said:
“Our decision to release these documents reflects a commitment to enhance transparency, beyond what is required by the Freedom of Information Act (FOIA), while also attempting to fulfill the spirit of the FOIA request.”
The FOIA request was filed by Coinbase on Oct. 18 and seeks clarity on an alleged 15% deposit cap imposed on crypto-friendly banks. The FDIC complied with the request in December 2024, although the documents were heavily redacted. A less censored version was published on Jan. 3.
Coinbase chief legal officer Paul Grewal said that the regulator retained information because two more letters were included in the uncensored documents.
In a Feb. 5 X post, he reiterated the allegations, claiming that the FDIC was hiding more pause letters.
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Author: Gino Matos
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