Leaders of the U.S. House Financial Services Committee sent a letter to Federal Deposit Insurance Corporation Acting Chairman Travis Hill seeking clarity on the FDIC’s regulatory and supervisory approach to banks’ digital asset activities and urging steps they argue would curb “debanking” of digital asset firms. The lawmakers referenced the FDIC’s release of documents related to FDIC ‘pause letters’ and concerns discussed in a committee hearing on “Operation Choke Point 2.0.” The letter sets out five recommendations: require supervisory guidance to be written and publicly disclosed, with limited redactions; explore ways, consistent with Bank Secrecy Act requirements, for institutions to provide clearer explanations for account closures; prohibit use of “reputational risk” as a supervisory factor and clarify or reform the role of “management” within CAMELS to prevent abuse or discrimination; subject supervisory guidance to periodic external review weighing benefits against impacts on law-abiding Americans’ access to banking; and ensure uniform application of guidance and rules rather than preferential or punitive case-by-case treatment. It also asks the FDIC to outline next steps and specify which actions can be taken without congressional legislation and which would require an act of Congress.
U.S. Financial Services Committee 2025-02-20
U.S. House Financial Services Committee urges the FDIC to clarify bank digital asset supervision and address debanking
The U.S. House Financial Services Committee leaders seek clarity from the FDIC on its regulatory approach to banks' digital asset activities to prevent "debanking" of digital asset firms. Their letter includes five recommendations, such as requiring public disclosure of supervisory guidance and prohibiting "reputational risk" as a supervisory factor. The committee also seeks information on which actions the FDIC can implement independently and which require congressional legislation.