Main to remember
- The FDIC put pressure on banks to limit participation in cryptography activities.
- The FDIC has issued letters on break to stop the cryptography services at Banks.
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The Federal Deposit Insurance Corporation (FDIC) has published documents revealing in -depth pressure on banks to limit their involvement in activities related to crypto, according to newly published archives.
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The FDIC has just emptied document on # OperationchokePoint2.0. Hey peeps, please dig and see what we find:PS – Scott Bessent is now officially the board of directors of the FDIC. Did he make this version of the document take place ??? pic.twitter.com/gqpkozg7rj
– Caitlin Long 🔑⚡️🟠 (@caitlinlong_) February 5, 2025
The documents show that the FDIC actively intervened in banking relations with cryptographic companies, in particular by directing banks to restrict the deposit accounts in US dollars for cryptographic companies.
The FDIC expressed at least 24 “pause letters” to the banks, asking them to stop or reduce the services related to the crypto. These letters have often cited security and solidity problems, blocking the cryptographic initiatives of many institutions.
Caitlin Long, CEO of Custodiabank, highlighted several fdic pressure instances.
“The FDIC has put pressure on certain banks so as not to take deposits in American dollars from cryptographic companies”
The files indicate that the FDIC has issued at least 24 letters of pause to the banks, asking them to stop or reduce the services related to the crypto.
In one case, the agency has forced a bank to reimburse customers for Bitcoin price loss, even if the bank’s program has not been designed to take the risk of price of cryptocurrency.
The FDIC has forced the above bank to reimburse its Bitcoin customers for the risk of Bitcoin price. It was not envisaged that the bank would take the risk of Bitcoin price in the program as described in the letter, but the FDIC has anyway reimbursed the bank’s customers for BTC losses. MAD!!! pic.twitter.com/gckpdtoed2
– Caitlin Long 🔑⚡️🟠 (@caitlinlong_) February 5, 2025
This action underlines the will of the FDIC to enforce the measures of criticism considering regulatory exceeding.
The document press release coincided with the appointment of Scott bessen to the FDIC board of directors, although its role in disclosure is not clear.
The press release follows the recommendations of the Inspector General General’s report on cryptographic risk management and is part of a broader strategy to limit the presence of cryptography in traditional finance.
Trump promised to dismantle the Choke Point 2.0 operation, which targets the cryptography industry by limiting its bank access.
Yesterday, Coinbase asked American banking regulators to allow banks to offer guard and cryptography trade services, in the midst of a regulatory obstacle survey.
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