WASHINGTON—A new report from Banking Dive reveals the FDIC requested that banks pause crypto-related activity in 2022 and 2023.
But the Fed did not expressly order them to stop providing banking services to crypto firms, Banking Dive said, referring to FDIC documents.
Banking Dive said that previously redacted letters, along with two newly released letters, do not appear to support claims from the crypto industry that the FDIC ordered financial institutions to “de-bank” crypto firms.
“They do, however, show that the regulator discouraged banks from offering services on public blockchain networks, and requested at least one bank refrain from implementing a new crypto-related product while the FDIC ‘consider[s] this crypto asset-related activity,’” Banking Dive reported.
Banking Dive explained that 23 of the letters, addressed to several banks by the FDIC, were originally released last month as part of the court case between Coinbase consultant History Associates and the regulator. History Associates sued the FDIC and the Securities and Exchange Commission in June to gain access to documents related to the regulators’ probe into Coinbase, Banking Dive added.
In the documents, the names of the banks, crypto products and blockchains are redacted, Banking Dive said.