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

On February 6th, according to crypto KOL MartyParty, the Federal Deposit Insurance Corporation (FDIC) announced today that it is actively reexamining its regulatory approach to cryptocurrency-related activities. This involves replacing the Financial Institution Letter (FIL) 16-2022 and providing institutions with a way to engage in cryptocurrency and blockchain-related activities while adhering to safety and soundness principles. This information was emphasized in Acting Chair Travis Hill's statement, indicating a shift in the FDIC's regulation of banks involved in cryptocurrency activities. This means that banks can custody customers' cryptocurrency and it will be insured by the FDIC. The Biden administration's Choke Point FIL 16-2022 letter has been withdrawn and replaced. MartyParty commented that the original link of FIL-16-2022 has been removed and shows a 404 error. The FDIC is erasing all evidence of policies that conflict with its political motives against cryptocurrency. BlockBeats Note: FIL 16-2022 is a guidance document issued by the Federal Deposit Insurance Corporation (FDIC), officially known as Financial Institution Letter 16-2022. This document was released in 2022 and focuses on providing guidance and warnings to financial institutions regarding cryptocurrency-related businesses, particularly imposing strict limitations on banks' relationships with the cryptocurrency industry. FIL 16-2022 stipulates that banks and other financial institutions are prohibited from providing certain services to cryptocurrency firms, especially those involving cryptocurrency custody, trading, financing, and other activities. The release of this document was regarded as part of the "Choke Point" policy aimed at curbing the expansion of the cryptocurrency industry by restricting cryptocurrency companies' access to banking services.