The Federal Deposit Insurance Corporation board is set to discuss rules that could affect crypto companies in bank’s claims.
In a notice Thursday, the FDIC said the board would consider a notification of proposed rules-making “about the prohibition on the use of reputation risks by regulators.” The agenda did not explicitly mention any distraction concerns related to digital assets, but FDIC Chairman Travis Hill’s performance previously criticised the use of “reputation risk” for using “reputation risk” as justifications that prevented some banks from engaging in cryptographic activities, such as allowing clients to send funds in exchange.
https://www.youtube.com/watch?v=-cpjxnan8s4
US President Donald Trump used this period in his August executive order, “Guaranteed Free Banking,” arguing that accessing reputational risks to regulators could lead to “politicization or illegal removal.” The order did not specifically mention digital assets.
Before Trump took office and signed the executive order, many of the crypto industry claimed they had been denied access to US banking services as part of an authorities’ compiled push for its relationship with digital assets.
Court documents released in December as part of a Freedom of Information Act request with the FDIC showed that regulators had asked several agencies in 2022 to “suspend all crypto-asset-related activities.”
Related: Crypto decanking is “still happening” as banks stick to chokepoint policies
The alleged actions, called “Operation Chalk Point 2.0,” became a campaign issue for Trump and many Republicans during the 2024 election. After Trump won the presidential election and appointed Hill, the acting FDIC chairperson said regulators would “reevaluate (its) supervisory approach to crypto-related activities.”
Cointelegraph contacted FDIC for comments but did not receive a response at the time of publication.
US government closures under Trump
The US government was shut down in the middle of Tuesday after lawmakers failed to pass a bill extending funds beyond October 1st.
The closure has significantly reduced the operation of U.S. financial regulators, including the Securities and Exchange Commission and Commodity Futures Trading Commission, but the FDIC said it will remain “open and operational” regardless of how long the political battle lasts.
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