Travis Hill, Chairman of the Federal Deposit Insurance Corporation (FDIC), said that the agency's supervision of crypto-related banking activities systematically discouraged institutions from progressing. This statement was made in a press release on February 5.
"I have been critical in the past of the FDIC's approach to crypto assets and blockchain," said Hill. "As I said last March, the FDIC's approach ‘has contributed to a general perception that the agency was closed for business if institutions are interested in anything related to blockchain or distributed ledger technology. Previously, the FDIC released 25 so-called ‘pause' letters sent to 24 institutions interested in pursuing crypto- or blockchain-related activities. The documents that we are releasing today show that requests from these banks were almost universally met with resistance."
On February 5, the FDIC released 175 documents detailing its supervision of banks involved in crypto-related activities. The release was made in response to a court-ordered deadline and included correspondence between the FDIC and banks seeking to engage in blockchain or digital asset services. According to Acting Chairman Travis Hill, the decision to disclose these documents was part of an effort to increase transparency beyond what is required by the Freedom of Information Act (FOIA). The documents include previously released "pause" letters sent to 24 banks, as well as additional correspondence with other institutions interested in offering crypto-related services.
Hill said that the agency’s restrictive policies had contributed to the perception that it was effectively "closed for business" for institutions interested in blockchain or distributed ledger technology. He pointed to the FDIC’s decision in 2022 to discontinue planned policy guidance on digital assets, which left institutions without clear regulatory expectations. According to his January 10 press release, Hill said there was a need for a transparent framework outlining permissible digital asset activities and a shift away from ad hoc regulatory engagement, which he said has discouraged banks from exploring blockchain-related services.
In a press release responding to the FDIC’s document release, Senator Cynthia Lummis, a Wyoming Republican and crypto advocate, said, "The days of an administration that operates in the dark are over." She credited the Trump administration for promoting government transparency and said she looks forward to working with Acting Chairman Hill to "restore the FDIC’s mission to serving American businesses, not shielding unelected bureaucrats."
Travis Hill is currently serving as Acting Chairman of the FDIC Board of Directors since January 20, 2025. He was sworn in as Vice Chairman of the FDIC on January 5, 2023, and previously worked at the agency from 2018 to 2022 as Deputy to the Chairman for Policy and Senior Advisor to the Chairman. Hill also served as Senior Counsel at the U.S. Senate Committee on Banking, Housing, and Urban Affairs from 2013 to 2018 and worked as a policy analyst at Regions Financial Corporation. He holds a Bachelor of Science from Duke University and a Juris Doctor from Georgetown University Law Center.
According to their website, the Federal Deposit Insurance Corporation is an independent agency created in 1933 to maintain stability and public confidence in the U.S. financial system. It insures deposits, supervises financial institutions for safety and consumer protection, and manages failed bank resolutions. The FDIC is funded by premiums paid by banks and savings associations rather than congressional appropriations and insures deposits up to $250,000 per depositor per insured bank for each account ownership category.
