FDIC | Crypto

An FDIC meeting will follow up on acting chair Travis Hill’s statements that he would support Trump’s executive order targeting “politicized or unlawful debanking activities.” The Federal Deposit Insurance Corporation’s board of directors is set to discuss proposed rules that could impact crypto firms amid allegations of debanking. In a Thursday notice, the FDIC said its board would consider a notice of proposed rulemaking “regarding prohibition on use of reputation risk by regulators.” Though the agenda did not explicitly mention debanking concerns tied to digital assets, acting FDIC chair Travis Hill has previously criticized regulators for using “reputation risk” as justification to prevent some banks from engaging in crypto activities, such as allowing clients to send funds to exchanges. US President Donald Trump used the term in an August executive order “guaranteeing free banking,” claiming that having regulators access reputation risk could result in “politicized or unlawful debanking.” The order did n...

Travis Hill has served as acting FDIC chair since Donald Trump took office on Jan. 20, later issuing guidance on crypto-related activities and criticizing allegations of debanking. US President Donald Trump sent the nomination of acting chair of the Federal Deposit Insurance Corporation (FDIC), Travis Hill, to the Senate for consideration to assume the government role for a five-year term. According to congressional records, Trump’s nomination of Hill as FDIC chair was sent to the Senate Banking Committee on Tuesday. Before assuming his role at the FDIC, Hill issued a statement that the department should offer additional guidance on digital assets and tokenization and spoke out against allegations of US authorities debanking companies due to their ties to crypto. He followed with a letter aimed at financial institutions in March, clarifying that banks could engage with digital assets as a ”permissible activity.”  Read more

The Office of the Comptroller of the Currency (OCC), the Federal Reserve Board (Fed), and the Federal Deposit Insurance Corporation (FDIC) released a joint statement explaining how existing banking rules apply when institutions custody crypto for customers.  The guidance describes “safekeeping” as the act of holding a digital asset on a client’s behalf and stresses […] The post OCC, Fed, FDIC publish joint guidance for banks offering crypto custody appeared first on CryptoSlate.