Key takes
- FDIC has squeezed banks to limit the involvement of encryption activities.
- FDIC issued a pause letter at the bank to stop the encryption service.
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According to a newly published record, the Federal Deposit Insurance Corporation (FDIC) has announced a document that has revealed a wide range of pressure on banks that restrict the involvement of encrypted activities.
Lingering
FDIC performed a document dump # OperationChokepoint2.0. Pee a little, dig into it, and take a look at what we found: https: //t.co/rzfvl5tyumPS -Scott Basent is currently officially on the FDIC board. Did he realize this document release? pic.twitter.com/gqpkozg7rj
-Kate Lin Long February 5, 2025
This document indicates that FDIC has actively intervened in the relationship between banks and cipher companies.
The FDIC issued at least 24 “paused letters” to the bank and instructed to stop or reduce encryption -related services. These letters often quoted concerns about safety and soundness and stalled many institutional encryption initiatives.
Caitlin Long, a CUSTODIABANK CEO, emphasizes multiple instances of FDIC pressure.
“FDIC put pressure so that some banks do not receive US dollars deposits from the cipher agencies.”
The record shows that FDIC, which issued at least 24 paused letters to the bank, indicates that the cryptographic service will be stopped or reduced.
In some cases, the agency forced the bank to refund the price loss of bitcoin, despite the fact that the bank program was not designed to undertake the price risk of encrypted means.
The FDIC has been forced to refund the Bitcoin customer to the above banks. As described in the letter, it was unlikely that the bank would take the price risk of bitcoin in the program, but the FDIC just rewrote BTC losses. Crazy! ! ! pic.twitter.com/gckpDOED2
-Kate Lin Long February 5, 2025
This action emphasizes FDIC's willingness to take measures to take overly regulated measures.
The document release is consistent with Scott Basent's appointment to the FDIC board, but his role in disclosure remains unknown.
This release is a more widespread strategy to restrict the existence of Crypto in traditional finance, following the recommendations of the FDIC inspectors' report on the management of the risk of Crypto.
Trump has promised to dismantle the Chokpoint 2.0 Operation. It is said that this is targeted in the cryptographic industry by restricting bank access.
Yesterday, Coinbase requested US bank regulatory authorities to allow banks to provide cryptocation and trading services.
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