FDIC Chief Reviews Crypto Guidance Amid Senate Hearing on Debanking

U.S. senators are investigating the debanking of cryptocurrency clients, coinciding with a statement from the interim chief of the Federal Deposit Insurance Corp. (FDIC) about overhauling digital asset supervision. Key points include:

The FDIC is reconsidering previous guidance that discouraged banks from engaging in cryptocurrency activities.
Travis Hill, acting FDIC chairman, revealed more documents showing regulatory pressure on banks to avoid crypto businesses.
Hill announced plans to provide a pathway for banks to engage in crypto while maintaining safety standards.
At a Senate hearing, Nathan McCauley of Anchorage Digital described the pervasive issue of banking relationships being severed due to regulatory pressure.
Senator Elizabeth Warren acknowledged the barriers faced by crypto companies and called for fair access to banking services.

The congressional review of debanking will continue with further hearings scheduled in the coming days.