The recently revealed FDIC documents uncover their recommendations, advising banks to reconsider engagement in crypto services. This includes basic Bitcoin transactions to more elaborate financial offerings involving crypto assets, reflecting the FDIC’s approach to emphasize compliance and safety.

Coinbase’s legal action against the FDIC highlighted issues of transparency. The unredacted letters call into question the FDIC’s intent, as they explicitly advised banks to pause crypto dealings. Congressional hearings could explore the balance between regulation and fostering crypto industry growth.