FDIC Reevaluates Oversight Of Crypto Activities

According to Odaily, the U.S. Federal Deposit Insurance Corporation (FDIC) has released a document concerning the oversight of crypto-related activities. FDIC Acting Chairman Travis Hill stated that institutions previously interested in engaging in crypto or blockchain activities faced significant resistance. This included repeated requests for additional information, prolonged periods of silence, and directives from regulators to pause or cease expansion of all crypto or blockchain activities. These actions conveyed to banks that proceeding would be extremely challenging, if not impossible, leading most banks to abandon their efforts. Looking ahead, the FDIC is actively reassessing its approach to supervising crypto-related activities and anticipates collaborating with the Digital Asset Market Working Group, established by an executive order on January 23, 2025.