The FDIC is currently reassessing its regulation of cryptocurrency activities, and the original regulatory warning has been removed.

BlockBeats News, February 6th, according to crypto KOL MartyParty, the Federal Deposit Insurance Corporation (FDIC) today announced that it is actively reassessing its regulatory approach to cryptocurrency-related activities. This includes replacing Financial Institution Letter (FIL) 16-2022 and providing institutions with a pathway to engage in cryptocurrency and blockchain-related activities while complying with safety and soundness principles.

This information was underscored in Acting Chairman Travis Hill's statement, indicating a shift in FDIC's regulation of banks involved in cryptocurrency activities. This means that banks can custody customers' cryptocurrency, and it will be FDIC insured. The Biden administration's Choke Point FIL 16-2022 letter has been rescinded and replaced.

MartyParty noted that the original FIL-16-2022 letter link has been removed and now shows a 404 error. The FDIC is scrubbing all evidence of policies that were politically motived against cryptocurrency.

BlockBeats Note: FIL 16-2022 is a guidance document issued by the Federal Deposit Insurance Corporation (FDIC), formally known as Financial Institution Letter 16-2022. This document was released in 2022 and primarily provided guidance and warnings to financial institutions regarding cryptocurrency-related businesses, particularly imposing strict limitations on the relationship between banks and the cryptocurrency industry.

FIL 16-2022 stipulated that banks and other financial institutions should not provide certain services to cryptocurrency companies, especially those involving cryptocurrency custody, transactions, financing, and other activities. The issuance of this document was considered part of the "Choke Point" policy, aiming to reduce the expansion of the cryptocurrency industry by restricting cryptocurrency companies' access to banking services.