The Federal Deposit Insurance Corporation (FDIC) has released a trove of 790 pages of previously undisclosed correspondence, shedding light on its behind-the-scenes pressure on banks dealing with crypto firms.
The documents, obtained through Freedom of Information Act (FOIA) requests, suggest a systematic effort to restrict banking services for digital asset companies—commonly referred to as Operation Chokepoint 2.0 by industry insiders.
Crypto Firms Facing Banking Barriers
According to the released materials, multiple banks seeking to engage with crypto businesses encountered regulatory pushback. The FDIC reportedly issued at least 24 ‘pause letters’, advising institutions to halt or reduce crypto-related services. These communications frequently cited concerns over financial stability, risk management, and regulatory compliance.
Letter received by the FDIC from Senator Lumis. Source.
Additionally, a 15% cap on bank deposits from crypto-related companies was allegedly in place, further limiting the sector’s banking options. The documents indicate that banks faced ongoing delays, excessive scrutiny, and shifting regulatory goalposts, making it increasingly difficult for crypto firms to access traditional financial services.
Following the document release, Wyoming Senator Cynthia Lummis accused the FDIC of destroying critical records related to its handling of crypto firms. Lummis has since instructed the agency to preserve all documents concerning digital asset activities dating back to 2022, warning that any attempts to erase evidence could lead to criminal referrals to the Department of Justice.
Source: The Kobeissi Letter.
Meanwhile, the SEC is undergoing its own shift, reportedly scaling back its crypto enforcement unit by reassigning staff to other areas. Some view this as part of a broader Trump administration pivot, which aims to reduce regulatory friction and position the U.S. as a global leader in digital assets.
A Turning Point for Crypto Regulation?
With FDIC Acting Chairman Travis Hill signaling a possible reassessment of the agency’s stance on digital assets, the tide may be shifting. However, the regulatory uncertainty brings to the fore the ongoing battle between traditional finance watchdogs and the evolving crypto sector. Whether this marks a true turning point or merely a temporary reprieve remains to be seen.
Read more: Base Sees $15 Million Revenue in January After Recording Near 600% YoY Growth