Travis Hill, Chairman of the Federal Deposit Insurance Corporation (FDIC), said that banks seeking to engage in crypto-related activities faced systemic resistance, including prolonged delays and repeated information requests. This statement was made in a press release on February 5.
"Previously, the FDIC released 25 so-called ‘pause' letters sent to 24 institutions interested in pursuing crypto- or blockchain-related activities," said Hill. "The documents that we are releasing today show that requests from these banks were almost universally met with resistance, ranging from repeated requests for further information, to multi-month periods of silence as institutions waited for responses, to directives from supervisors to pause, suspend, or refrain from expanding all crypto- or blockchain-related activity. Both individually and collectively, these and other actions sent the message to banks that it would be extraordinarily difficult—if not impossible—to move forward."
The FDIC released 175 documents on February 5, detailing its supervision of banks involved in crypto-related activities. According to Hill, the disclosure was made in response to a court-ordered deadline and includes correspondence between the FDIC and banks seeking to engage in blockchain or digital asset services. Hill said that the release was intended to improve transparency beyond what is required under the Freedom of Information Act (FOIA). The documents contain previously published "pause" letters sent to 24 banks, along with additional communications from other institutions interested in offering crypto-related services.
Operation Chokepoint 2.0 (OCP 2.0) refers to alleged efforts by financial regulators to pressure banks into cutting off services to crypto firms and other disfavored industries without formal regulations or public justification. Marc Andreessen, general partner at Andreessen Horowitz, described OCP 2.0 as an exercise of "raw administrative power" used to target lawful businesses without due process. Speaking on The Joe Rogan Experience podcast on November 26, he cited the lack of transparency, stating that the process operates without written rules, legal decisions, or an appeals mechanism.
According to Sygna, in March 2023, the Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC) took enforcement actions against Binance and Coinbase as part of Operation Chokepoint 2.0. The CFTC sued Binance for allegedly allowing U.S. customers to trade derivatives without proper registration, while the SEC issued a Wells Notice to Coinbase over its planned lending program, arguing it constituted an unregistered security. These actions have contributed to growing concerns about regulatory pressure on the cryptocurrency industry and its ability to operate in the U.S.
Hill has served as Acting Chairman of the FDIC Board of Directors since January 20, 2025, after previously being sworn in as Vice Chairman on January 5, 2023. From 2018 to 2022, he held roles at the FDIC as Deputy to the Chairman for Policy and Senior Advisor to the Chairman. Earlier in his career, Hill worked as Senior Counsel at the U.S. Senate Committee on Banking, Housing, and Urban Affairs from 2013 to 2018 and as a policy analyst at Regions Financial Corporation. According to the FDIC website, he earned a Bachelor of Science from Duke University and a Juris Doctor from Georgetown University Law Center.
Established in 1933, the Federal Deposit Insurance Corporation is an independent agency tasked with maintaining stability and public confidence in the U.S. financial system. It provides deposit insurance, oversees financial institutions for safety and consumer protection, and manages the resolution of failed banks. The agency operates without congressional appropriations but funds itself through premiums paid by banks and savings associations. FDIC insurance covers deposits up to $250,000 per depositor per insured bank for each account ownership category.