Ripple's Chief Technology Officer criticizes the actions taken by the Federal Deposit Insurance Corporation (FDIC) towards cryptocurrency

On December 9, Ripple's Chief Technology Officer criticized the actions taken by the Federal Deposit Insurance Corporation (FDIC) towards cryptocurrencies, especially after Coinbase publicly disclosed that FDIC attempted to prevent banks from supporting this industry. Recent court documents and industry disclosures have drawn attention to regulatory strategies towards the crypto industry. New documents show that in 2022, due to unresolved regulatory risks, FDIC suggested banks suspend activities related to cryptocurrency. An investigation into these actions by Coinbase found that FDIC has prevented financial institutions from providing services for the crypto industry more than 20 times. These findings were revealed through the Vaughn Index which outlines letters exchanged between FDIC and banks. Some of these documents date back to March 2022 and have raised concerns about financial stability, operational security, and compliance risks associated with crypto products.