The Federal Deposit Insurance Institution (FDIC) announced 175 documents including the audit process for banks related to crypto activities. The documents were introduced to the market before the congress hearing before and soon. The documents announced draw attention in terms of revealing the difficulties experienced by the regulatory institution in communication and demands with banks.
Documents and Inspection Process
In the documents published, despite the continuous request of additional information from the banks, there were long delays and the instructions to stop activity given from the auditors. With the expansion of the 25 “pause” letters sent by FDIC for 24 institutions in the past, correspondence with different institutions were included in the documents.
The Congress hearing was planned to address the banking practices and financial access issues. At the hearing, FDIC’s previous audit method and applications play a role in preventing banks’ associated activities with Blockchain. In this context, how regulatory barriers affect digital assets attempts will be discussed.
Travis Hill: “Documents reveal that almost all of the desires of the banks have shown regulatory resistance.”
Senator Cynthia Lummis found the statement of FDIC’s documents positive in terms of transparency. Lummis stated that the practices of the limitation of banking access have ended and supported these efforts of the institution. The statement emphasized that the clarification of the regulatory process may benefit for the sector.
Arrangement for the Future
The FDIC plans to reconsider the current audit approach and create a more flexible regulatory frame for crypto activities. In collaboration with the Presidential Working Group, a configuration in accordance with the security principles is aimed. This initiative aims to contribute to the development of the sector in the light of past feedback.
The FDIC’s documents move reflects the search for transparency and accountability in the audit process. Published documents, while revealing the complexity of communication between banks and regulatory institutions, they can offer clues about the future of the sector. These developments may contribute to the reshaping of the regulatory environment for the initiatives of financial institutions on digital assets.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
