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📌 FDIC releases 175 documents on cryptocurrency debunking ahead of today’s hearing.

Permanent link for this post:The FDIC has released 175 documents showing how banks have been blocked, delayed or ignored when trying to offer cryptocurrency services. Cryptocurrencies

– Permanent link for this post:The FDIC has released 175 documents showing how banks have been blocked, delayed or ignored when trying to offer cryptocurrency services.

Travis Hill, acting chairman of the FDIC, said that banks are stuck in limbo, Most banks have admitted to abandoning cryptocurrency-related projects.

Elizabeth Warren called on President Trump to take action against de-banking after revealing thousands of complaints, mostly involving large banks such as JPMorgan and Wells Fargo.

The Federal Deposit Insurance Corporation (FDIC) today released another 175 documents revealing how banks seeking to explore cryptocurrencies were blocked, detained and completely ignored under federal oversight.

The release of the documents comes amid a Senate hearing on cryptocurrencies.

Acting FDIC Chairman Travis Hill said that banks interested in blockchain and distributed ledger technology will not be able to participate in the hearing on cryptocurrencies, on the eve of which Republican leaders will ask the agency questions about past anti-cryptocurrency measures under former President Joe Biden. He accuses the FDIC of giving the impression that banks interested in blockchain and distributed computing technology are not welcome. And now, with Republicans at the helm, the dirty laundry is out in the open:

documents contain internal correspondence, emails, and endless correspondence between banks and FDIC officials. They all show that banks trying to get involved in cryptocurrencies were often met with silence, repeated requests for more information, or explicit orders to hit the pause button. According to Hill, this outcome was inevitable: the FDIC previously published that it had sent out 25 letters, so-called pause orders, to 24 banks, warning them to suspend or postpone their plans to expand into cryptocurrencies. However, the new documents reveal the extent of the resistance:

Hill acknowledged that these reports show a clear pattern of resistance from the regulator. Many banks faced months of silence after the initial proposal. Some banks were also explicitly instructed “not to suspend, interrupt or expand any cryptocurrency or blockchain-related activities.

most banks simply stopped trying, Hill acknowledged.

He confirmed that the FDIC rescinded Financial Institution Letter (FIL) 16-2022, which was a guidance that effectively gave banks a reason to think twice about whether to get involved with cryptocurrencies. Hill also stated that the FDIC will work closely with the President’s Task Force on Digital Asset Markets, created by President Trump’s January 2025 executive order.

While Hill is trying to repair the damage, Senator Elizabeth Warren (a member of the Senate Banking Committee) is taking a different approach.

she sent a letter to President Donald Trump demanding immediate action to stop what she called “the American people from banking.

Woven into the letter were thousands of complaints from consumers whose accounts have been closed by major banks in recent years. According to Warren’s analysis, more than half of the complaints involved the big four banks – Bank of America, JP Morgan Chase, Wells Fargo and Citigroup.

President Trump has already expressed his disapproval of the argument. Just a week ago, in a speech at the World Economic Forum, he criticized the practice and then signed an executive order calling for fair access to banking services for all law-abiding citizens.

However, Warren wants to work directly with President Trump and Senate Banking Committee Chairman Tim Scott to address the problem from the beginning. She outlined five steps the Consumer Financial Protection Bureau (CFPB) should take to resolve the crisis. Ms. Warren said banks should ban contract clauses that close accounts because of a customer’s political or religious beliefs, limit overdraft fees to $5, and crack down on discriminatory debunking practices.

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