FDIC Chair Nomination and Digital Assets

Travis Hill’s nomination as FDIC chair is expected to influence the agency’s approach towards digital assets and tokenization. Before stepping into his acting role, Hill emphasized the need for the FDIC to provide clear guidance on these technologies. In March, he addressed financial institutions, asserting that engaging with digital assets should be recognized as a permissible activity.

Hill stated, “I expect this to be one of several steps the FDIC will take to lay out a new approach for how banks can engage in crypto- and blockchain-related activities in accordance with safety and soundness standards.” This perspective is likely to bring a more structured framework for banks wishing to explore digital currencies and blockchain technology.

Potential Changes in Crypto Policy

Though Trump has made multiple nominations that could affect US crypto policies, including Hill’s, he has yet to fill some key regulatory positions, such as the chair of the Commodity Futures Trading Commission (CFTC). The vacancy of a Democratic commissioner at the SEC further complicates the regulatory landscape.

The Senate Banking Committee will eventually review Hill’s nomination, though the timeline remains uncertain due to the current government shutdown. The shutdown, caused by Congress’s failure to pass a funding bill, is expected to continue into the next week.

Implications for the Crypto Market

The nomination of Hill is poised to impact the crypto market significantly. If confirmed, Hill’s leadership could lead to improved regulatory clarity and a more conducive environment for digital assets innovation. This could foster greater institutional participation in the crypto market, potentially driving growth and increasing mainstream acceptance.

In conclusion, the FDIC chair nomination represents a pivotal moment for digital assets. With Hill’s potential leadership, the crypto industry could see significant policy shifts that promote safety and innovation.

The post FDIC Chair Nomination: 5 Powerful Impacts on Digital Assets Policy appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

The document, labeled “Crypto-Asset Safekeeping by Banking Organizations,” details risk factors that banks need to consider, such as understanding the intricacies of a rapidly evolving asset class, potential legal liabilities if crypto assets are misplaced, and the legal and compliance obligations under the Bank Secrecy Act and Anti Money Laundering regulations.

The document further notes, “Providing crypto-asset safekeeping services may entail significant resources and attention.” The agencies behind this document are the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC), and the Board of Governors of the Federal Reserve System.

Banks often engage third-party services to handle their crypto asset custody. For example, asset manager BlackRock utilizes Coinbase and subsequently Anchorage for Bitcoin (BTC) custody. BNY Mellon, the oldest bank in the US, also provides digital asset custody services for its clients. However, the document emphasizes that banks remain answerable for the actions of their sub-custodian. This could have significant implications if a bank’s custodian is attacked, resulting in lost crypto assets.

The document underlines the necessity of audit programs, addressing the peculiarities of crypto assets, including key generation, transfer and settlement of assets control, and staff expertise. If such programs are lacking within the bank, it is advised that “management should engage appropriate external resources…to assess crypto-asset safekeeping operations.”

There have been recent hints that banks are considering branching out into crypto. The Wall Street Journal reported in May that a group of big banks was in “early talks” to issue a joint crypto stablecoin. The regulatory environment currently holds appeal, especially as governing bodies have eased the transition into crypto. For instance, the Federal Reserve has removed the “reputational risk” criteria from its bank oversight, which was previously criticized for unfairly targeting crypto businesses.

In contrast, some crypto-based companies are contemplating becoming banks themselves. On July 2, Ripple, the creator of XRP (XRP), applied for a banking license with the OCC. Circle, the creator of stablecoin USD Coin (USDC), has followed suit.

The post US Regulatory Bodies Highlight Risks for Banks Considering Crypto Custody appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

The statement, which was issued on Monday, emphasizes that the three major US federal banking agencies are concerned with the safekeeping of cryptocurrencies. The agencies have clarified that the statement does not establish any new supervisory expectations.

The agencies urged banking organizations to evaluate potential risks associated with new crypto-related products and services. Those risks encompass cybersecurity, control over keys, and the management of other sensitive information, as per the joint statement.

“A banking organization that is contemplating offering custody services for crypto-assets should consider the evolving nature of the crypto-asset market, the underlying technology of crypto-assets, and implement a risk governance framework that adapts to the relevant risks,” the agencies advised.

In the past few months, since the inception of President Trump’s administration, several agencies have provided clarifications on their stance toward crypto regulations. For instance, in May, the OCC stated that US banks are allowed to buy and sell crypto assets on their own behalf. The FDIC has also adjusted its position on cryptocurrencies, stating that it will permit financial institutions to engage in crypto activities without prior notification to the agency.

Key agencies have also seen the appointment of crypto-friendly regulators. Last week, Jonathan Gould, a former blockchain executive, was confirmed by the Senate to lead the OCC. Gould had served as the chief legal officer at Bitfury and was previously the senior deputy comptroller and chief counsel at the OCC.

Disclaimer: The Block is an independent media outlet that provides news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver unbiased, impactful, and contemporary information about the crypto industry. This article is intended for informational purposes only and is not to be interpreted as legal, tax, investment, financial, or other advice.

The post US Banking Authorities Provide Clearer Guidelines for Crypto Custody Services appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

FDIC-regulated institutions were informed about this change via a letter named “Notification of Engaging in Crypto-Related Activities,” which was disseminated on April 7, 2022. The regulatory body further clarified this new stance in a press release issued on March 28, 2025.

The press release affirmed that FDIC-supervised institutions can now undertake permissible crypto activities without the need for FDIC’s nod of approval. The statement read, “This FIL affirms that FDIC-supervised institutions may engage in permissible activities, including activities involving new and emerging technologies such as crypto-assets and digital assets, provided that they adequately manage the associated risks.”

The permissible activities encompass crypto and digital asset issuance, crypto-asset custody services, management of stablecoin reserves, and involvement in blockchain and distributed ledger-based settlement or payment systems, among others. However, the FDIC insists that the institutions must adhere to existing laws and regulations, and all activities must comply with FDIC policies and standards.

The organization also highlighted potential risks, such as liquidity, operational, market, and cybersecurity, and advised banks to satisfy consumer and anti-money requirements and coordinate with suitable supervisory teams.

As part of its effort to create regulatory clarity, the FDIC intends to work alongside the President’s Working Group on Digital Asset Markets to enhance banks’ involvement in certain crypto practices. It also plans to collaborate with banking agencies to substitute interagency documents relating to crypto-assets issued in January 2023 and February 2023 with future guidance or regulations.

In conclusion, this move by the FDIC could fortify the existing liaison between banks and the wider crypto industry, paving the way for banks to expand their crypto-related services and products.

The post FDIC Eases Crypto Engagement Rules for Banks: No Pre-Approval Needed appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

During the early part of 2023, the downfall of crypto-friendly banks prompted the first accusations of Operation Chokepoint 2.0. Critics like venture capitalist Nic Carter viewed it as an attempt by the government to coerce banks into severing connections with cryptocurrency firms.

Even with recent regulatory changes, the FDIC and other agencies continue to “oppose basic transparency,” as stated by Grewal in a March 8 post on X. “They just don’t seem to get the message,” he added.

Coinbase has called on the FDIC to reveal in court how it performed “due diligence” to avoid the destruction of any related documents. Grewal claims that the agency has “consistently declined” to comply.

These comments followed the US Office of the Comptroller of the Currency (OCC) softening its stance on banks’ interaction with crypto. This happened just hours after President Donald Trump pledged to put an end to the ongoing crackdown hampering the ability of crypto firms to access banking services. Trump made these remarks during the White House Crypto Summit, declaring an end to Operation Chokepoint 2.0.

During Operation Chokepoint 2.0, approximately 30 tech and crypto founders in the US were “secretly debanked,” as reported by Cointelegraph in November 2024.

Grewal also accused the FDIC of not fully cooperating with Coinbase’s Freedom of Information Act (FOIA) documentation requests. He stated that the FDIC has produced only partial documents with little relevance to the specific FOIA policies or practices challenged by History Associates in its amended complaint. Grewal questioned, “What exactly are they hiding?”

Grewal’s team has requested a “sworn testimony” from the FDIC, given the heavy redactions in the documents provided, making them almost incomprehensible.

On March 4, Coinbase also submitted a FOIA request to the Securities and Exchange Commission (SEC) to learn about the number of investigations and enforcement actions against crypto firms between April 17, 2021, and January 20, 2025.

Earlier, Trump had signed an executive order to alleviate some banking difficulties for Web3 companies and establish clearer regulations for digital assets. This order excluded the US Federal Reserve and FDIC from cryptocurrency working groups, potentially ending the prior debanking efforts in the crypto industry, as reported by Cointelegraph on January 24.

The post FDIC’s Lack of Transparency on Operation Chokepoint 2.0 Criticized by Coinbase’s CLO appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

The letter from Coinbase reportedly requested the OCC to revoke an interpretive letter that establishes a de facto application process for innovative bank activities, thereby hindering banks from participating in the crypto asset market.

Besides, the US-based exchange appealed to the Fed and the FDIC to validate that state-chartered banks can offer and delegate crypto custody and execution.

In a separate letter, three law firms hired by Coinbase pointed out that existing federal laws authorize banks to offer crypto services and collaborate with third-party service providers like Coinbase. However, banking regulators need to affirm this, Coinbase reportedly stressed.

The role of US banks in catering to the crypto industry has long been a contentious topic. Some banks like BNY Mellon are progressing with plans to offer crypto custody services, but there have been reports that the FDIC has asked several US banks to halt their crypto activities.

In June 2024, Coinbase initiated lawsuits against the US Securities and Exchange Commission and the FDIC, accusing the agencies of a “coordinated attempt to cut off digital-asset firms from essential banking services.”

As the legal battle continues, the community is anticipatively waiting for positive changes in the US crypto landscape. Coinbase’s endeavor to secure banking support for crypto custody and execution signifies a significant development, particularly as the platform is the custodian for several US Bitcoin exchange-traded funds, which commenced trading last year.

The post Coinbase Calls on US Regulators to Lift Crypto Banking Restrictions appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

The United States Federal Deposit Insurance Corporation (FDIC) has released a post-mortem assessment of Signature Bank, citing poor management and inadequate risk management practices as the primary reasons for its collapse. This development highlights the importance of robust risk management in the financial sector, especially as the world becomes increasingly digitalized and cryptocurrencies gain prominence.

IRS Crypto Tax Guidance: Expected in 12 Months

Julie Foerster, the digital assets project director for the US Internal Revenue Service (IRS), revealed at Consensus 2023 that the agency aims to issue crypto tax guidance within the next 12 months. Foerster also emphasized the IRS’s intention to change its approach towards cryptocurrencies and work more closely with the industry. This potential collaboration could foster a more efficient regulatory environment for digital assets, ultimately benefiting investors and the market as a whole.

Bitcoin Mining Costs Surge to $17K per BTC in 2023

A recent study has found that the cost of mining a single Bitcoin in the United States has risen significantly to $17,000 in 2023, compared to the $5,000-10,000 range seen just a year ago. The primary driver behind this surge in mining costs is the skyrocketing electricity rates across various US states. This increase in production costs could impact the profitability of mining operations and, in turn, influence the overall market dynamics.

Crypto Market Performance: Technical Analysis

In the last trading session, Bitcoin (BTC) rose 0.4% against the US Dollar, with the Rate of Change (ROC) indicator giving a positive signal that aligns with our overall technical analysis. Key support and resistance levels are currently at $28,895 and $29,633, respectively.

Meanwhile, Ethereum (ETH) fell 0.7% against the USD, with the ROC indicator turning negative. Support for ETH stands at $1,873.67, while resistance is at $1,932.95.

Ripple (XRP) experienced a 0.9% drop against the USD, with the Stochastic-RSI signaling positivity. XRP’s support level is at $0.4645, and resistance is at $0.4934.

Lastly, Litecoin (LTC) saw a 2.7% decline against the USD, with a negative ROC indicator. Support for LTC is at $88.3467, and resistance is at $92.8867.

Economic Calendar: Key Data Releases

The economic calendar for today includes the following key data releases:

• US ISM Manufacturing New Orders Index, which measures the business conditions in the manufacturing sector, at 14:00 GMT.
• US ISM Manufacturing PMI, a significant indicator of overall economic conditions, at 14:00 GMT.
• Japan’s Jibun Bank Manufacturing PMI, providing an early snapshot of the Japanese manufacturing sector, at 00:30 GMT.
• Japan’s Monetary Base, which includes currency supplied by the central bank, at 23:50 GMT.
• US ISM Manufacturing Employment Index, estimating the labor market in the manufacturing sector, at 14:00 GMT.
• Japan’s Consumer Confidence Index, reflecting the sentiment of individuals regarding economic activity, at 05:00 GMT.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

The post The Rising Cost of Bitcoin Mining and Its Impact on the Crypto Market appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.