Trump’s FDIC Chief Rethinks Crypto Guidance As US Senators are investigating degradation

As US Senators were prepared to gather for a Hearing about us Banking by Crypto Clients, the temporary head of the Federal Deposit Insurance Corp. said his agency is Monitoring its supervision of digital assets And revealed more correspondence on Wednesday when FDIC officials managed banks away from Cryptocurrency business.

Travis Hill, the functioning FDIC chairman who was tapped by President Donald Trump has thrown more of the agency’s previous documents and said that the US bank regulator will consider its Previous crypto -guidance It deliberately kept the banks an arm’s length away from what had been seen as the unregulated volatility of crypto. The previous letters between FDIC and Bank have been the focus of a law freedom of law to fight between Coinbase and the Agency, where the courts had ordered the regulator to share more information.

Meanwhile, Hill said FDIC will be “to give a way for institutions to participate in crypto and blockchain-related activities while still complying with security and health principles,” according to a statement issued before the start of A hearing Wednesday in the Senate Bank Committee on this topic.

“I instructed the staff to conduct a comprehensive review of all supervisory communication with banks trying to offer crypto-related products or services,” he said. “While this review remains in progress, we will release a large batch of documents today before a court ordered on Friday.”

Hill, who will run the FDIC until Trump makes a permanent candidate, characterized the agency as deliberate, making it impossible for banks to deal with cryptic business.

“Inquiries from these banks were almost universally fulfilled with resistance, ranging from repeated requests for further information, to several months of silence when institutions waited for answers, to directives from supervisors to pause, suspend, or refrain from expanding all crypto- Or blockchain-related activity, ”he said.

Read more: US Banking should ease the path of crypto, Republicans taking reins at FDIC, suggesting

When the Senate’s consultation was underway, President Tim Scott, a Republican in South Carolina, called the situation at the FDIC a “disgusting and condescending picture of abuse” and praised Hill’s actions.

During the consultation, Nathan McCauley, co -founder and CEO of Federal Chartered Crypto Bank Anchorage Digital, shared its report that Anchorage was cut off from banking conditions due to the regulatory pressure.

“To say that this is pervasive is an understatement,” he told the senators in his testimony. “It’s been all over the industry everyone has treated this.”

He called it so common that “it became background noise” where it “just assumed that if you were a cryptic business, you would have trouble getting banking services.”

He claimed that the pressure from regulators contradicted what US bankers would actually do in the sector of digital assets.

“All the big banks wanted to work with crypto and were scared away from that of the regulatory apparatus,” he said.

Senator Elizabeth Warren, the committee’s ranking Democrat, tried to highlight the other segments of the American population that are routinely blocked for bank services. But she agreed with McCauley’s central point.

“I don’t think you should be locked out of our banking system for a moment,” she said. “In many cases, it is wrong for banks to close accounts and threaten your ability to make payroll or pay rent on time without even giving an explanation as long as you follow the law.”

Congress review of degradation continues on Thursday with a selection of House Financial Services Hearing with a similar agenda. And the crypto interest of the committee continues next week with an 11th February -hearing entitled “A Golden Age of Digital Assets: Mapping a Path Forward.”

Read more: Trump’s Crypto Czar Sacks say ‘Golden Age’ comes

Update (5 February 2025, 18:00 UTC): Adds information on further planned congressional hearings.