Written by Pete Schroeder and Douglas Gillison
WASHINGTON (Reuters) – U.S. banking regulators have directed banks to suspend direct efforts in cryptocurrencies in 2022 and 2023, despite industry complaints of widespread “debanking”. The government did not order virtual currency companies to stop providing banking services, according to documents released on the 2nd. Friday.
History Associates, Inc., a research firm hired by cryptocurrency exchange Coinbase, has filed a lawsuit against the Federal Deposit Insurance Corporation seeking to release supervisory “cease and desist letters” it sent to unidentified banks. In response, a judge ordered the Federal Deposit Insurance Corporation to provide a version of that document.
The FDIC first made the letter public in December, but a judge ordered it to be resubmitted with more “subtle edits.” The 25 new letters include two additional letters sent to unidentified banks that were not included in the original FDIC filing.
The lawsuit is part of a campaign by Coinbase and other crypto companies to expose what they say was a concerted effort on the part of U.S. banking regulators to keep crypto companies out of the traditional financial system. be.
Paul Grewel, Coinbase’s chief legal officer, said in a post on called for further investigation.
To counter those claims, the FDIC on Friday announced how regulators should evaluate inquiries from lenders considering trading crypto assets directly compared to providing banking services to crypto companies. It also released a 2022 internal memo detailing the
These documents provide a valuable glimpse into the confidential banking supervision process. They suggested that while FDIC examiners were wary of the sector, which has been plagued by fraud, bankruptcies, and volatility, they did not order banks to completely shut down the sector. There is.
The document comes weeks before the incoming administration of President-elect Donald Trump is expected to announce the outline of a wide-ranging review of crypto policy. President Trump is expected to issue an executive order directing banking regulators to ease the sector as early as Inauguration Day, Jan. 20.
Several of the FDIC’s letters indicate that staff have directed banks to suspend participation in crypto initiatives or refrain from further expanding crypto services for their customers. In other cases, the FDIC has required banks to answer detailed questions before proceeding further with crypto ventures.
Meanwhile, the internal memo distinguishes between banks that directly engage in crypto activities, such as custody of crypto assets, and banks that provide traditional banking services to crypto customers, such as providing loans and deposit accounts. The first category requires more rigorous scrutiny, he said.
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