FDIC Unveils 175 Documents on Banks' Restrictions on Crypto Businesses, Operation Choke Point 2.0 under Scrutiny
The FDIC has a checkered past in its dealings with the crypto industry, having overseen a significant instance of regulatory overreach through Operation Choke Point 2.0. Banks were instructed to sever ties with cryptocurrencies in a move that has yet to fully reveal its scope.
Acting FDIC Chair Travis Hill has taken a notable step by making public 175 pertinent documents that shed light on these controversial actions.
"I have previously expressed concerns about the FDIC's stance on crypto assets and blockchain technology. As stated back in March, the perception that the agency was unreceptive to business involving blockchain or DLT has been prevalent," Hill conveyed in a press release accompanying the document release.
Over the past few years, the FDIC's policies have strained the relationship between crypto and traditional financial institutions, leading the crypto community to establish its own financial infrastructure. However, there seems to be a shift in the winds under the current leadership.
Hill, who had criticized the FDIC's anti-crypto measures prior to assuming the role of Acting Chair, has been appointed amidst discussions of potentially dismantling the agency under the Trump administration.
The landscape of crypto regulation is evolving, with congressional committees investigating Operation Choke Point, and the FDIC's interactions with the crypto sector forming a crucial part of these inquiries.
As the investigations progress, experts believe they could pave the way for a new era of federal crypto oversight. While the future of the FDIC remains uncertain, the outcome of these probes could have lasting implications for the crypto industry.
Meanwhile, a web3 entrepreneur shared a hypothetical scenario highlighting the challenges faced by crypto startups when navigating the banking system under the FDIC's scrutiny.
In a significant move, Coinbase's Chief Legal Officer is scheduled to testify regarding Operation Choke Point and related de-banking efforts, signaling a potential shift in the federal approach to crypto enforcement.
Speculations surrounding the future of the FDIC, including the possibility of its abolition, have brought uncertainties to the industry. Despite these uncertainties, ongoing investigations aim to unravel the full extent of Operation Choke Point 2.0 and its implications for the crypto ecosystem.
Top crypto platforms | February 2025 Phemex, Bybit, Margex, BingX, Coinex