In Brief:

FDIC released internal documents detailing its resistance to banks serving crypto firms.

The release coincides with Senate hearings on ‘debanking’ and regulatory overreach.

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The Federal Deposit Insurance Corporation (FDIC) has unexpectedly published 790 pages of documents, shedding light on its approach to banking and crypto regulations. The move comes as lawmakers investigate “Operation Chokepoint 2.0,” a suspected effort to limit banks from working with crypto firms.

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FDIC Acting Chairman Travis Hill stated that past policies made it nearly impossible for banks to engage in crypto-related activities, despite official claims that financial institutions were not prohibited from servicing crypto companies.

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The documents also include cases where banks were pressured to avoid stablecoin issuers and Bitcoin-related services, citing "reputation risk."This release comes just days after Federal Reserve Chair Jerome Powell stated that banks are allowed to serve crypto clients as long as they manage risks properly. As pressure mounts, the FDIC has signaled that more documents could follow, potentially exposing further regulatory overreach.