FDIC to review rule that may shape banks’ crypto relationships

The FDIC's board of directors plans to discuss proposed rules that could significantly affect crypto firms as they deal with accusations of debanking. Acting chair Travis Hill has criticized the reliance on 'reputation risk' by regulators, which can hinder banks' ability to engage in crypto-related activities. President Donald Trump's recent executive order targets the politicization of banking practices, hinting that these regulatory strategies may lead to unlawful debanking. Historically, the crypto sector has faced restrictions in banking services, a situation often described as 'Operation Chokepoint 2.0.' In light of these developments, Hill has indicated that the FDIC will reassess its interactions with other financial regulators to ensure operational continuity during political disputes.

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