The Federal Deposit Insurance Corporation (FDIC) has released 175 documents from the Biden-era FDIC correspondence ahead of a Senate hearing on the debanking of crypto companies. The documents reveal new details of "Operation Choke Point 2.0," which involved the FDIC pressuring financial institutions to halt operations with companies using cryptocurrencies. The new FDIC team voluntarily released the documents, unrelated to Coinbase's lawsuit against the FDIC. The released documents show that the FDIC pushed more companies to debank crypto clients, often ignoring bank resistance and directing them to suspend all crypto-related activities. The documents also highlight concerns about reputation risks, crypto volatility, and consumer protection cited by the FDIC as reasons for denying banking services to crypto clients. Both Democrats and Republicans in the Senate hearing expressed agreement that unfair denials of banking occurred on political grounds. Senator Elizabeth Warren, known for her criticism of cryptocurrencies, also joined in investigating the unfair debanking. The release of the documents and bipartisan animosity towards debanking initiatives signal a potential change in the FDIC's approach to crypto. The FDIC plans to reevaluate its supervisory approach to crypto-related activities, work with the President's Working Group on Digital Asset Markets, and prioritize safety and soundness principles.



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