FDIC Banking Banking Classification on encryption

The Federal Deposit Company issued an insurance company on Wednesday morning a set of correspondence between the agency and the organization subject to the organization regarding the activities of the encrypted currency, the proposed relationships, and the documents that Travis Hill said to clarify the agency’s resistance to agree to these activities.

The temporary storage memory for 175 almost limited documents consists of mostly Messages from FDIC To the supervisory banks that describe the proposed encryption activities and supervisory guidelines on whether it is necessary to proceed with these activities. In a statement accompanying the version, the head of FDIC Travis Hill said that these communications show a pattern of prohibiting or delaying decisions regarding activities related to the encrypted currency under the Biden Administration.

“The documents we make today show that requests from these banks have been almost received globally with resistance, starting from repeated requests to obtain more information, to multiple silence periods when institutions await responses, to directives from supervisors to stopping, standing, commenting or abstinence About the expansion of all activity of encryption or Blockchain. As a result, the vast majority of banks stopped trying. “

Hill said that is certain Internal communications He was released as part of a publication of the required court by February 7. This comes from a Law of Freedom of Information It was presented by Crypto Excination Coinbase against FDIC last summer in search of information about FDIC’s refusal to request internal communications with banks about encryption activities.

Hill said: “When I became a prosecutor, I ordered the employees to conduct a comprehensive review of all supervisory contacts with banks that sought to provide encryption products or services.” “While this review is still under implementation, we launch a large group of documents today, before the deadline requested by the court on Friday. Our decision to issue these documents reflects an obligation to enhance transparency, exceeding what is required through freedom of information behave, during Attempt to fulfill the spirit of requesting the Freedom of Information Law. “

FDIC in 2022 I issued a financial institution letter To the FDIC banks require them to inform the agency of any current or future plans to participate in encryption activities, including asset custody, stablecoin version or mediation for encryption exchange, to name a few. FDIC had already released Internal note On June 6, 2022, for regional supervisory managers who explain the types of activities that will be justified by increasing the audit, and that the memo indicates that the regular deposit and lending activities of encryption companies that are not forced by the encryption themselves will not be considered an encrypted to encryption activity as shown in the financial institution’s letter, or an elephant .

“The encryption activity does not include providing deposit account services to automatic machinery operators, or providing deposits accounts used in commercial operations or processing ACH payments to companies related to encryption that the bank does not keep/maintain. The FDIC Memorandum said that the money customer money related to encryption, or submission Loans for encrypted asset companies that are not included in encrypted assets, “said FDIC. “However, the activity associated with the encryption includes lending when using or relying on coded couples as a guarantee, and as mentioned above, it includes the deposit account accounts used to maintain Stablecoin reserves.”