Bank Pauses Crypto Services Plan

June 20, 2023

Board of Directors
XXXXX

Subject: Response to Notification of Engagement in Crypto-Related Activities

Dear Members of the Board:

The FDIC acknowledges the notification provided by XXXXX (Bank) on April 12, 2022, regarding the Bank’s engagement to provide crypto-asset buy, sell, and hold services to customers through XXXXX on the bank’s online platform provided by XXXXX. The notification was provided pursuant to Financial Institution Letter (FIL), FIL-16-2022 Notification of Engaging in Crypto-Related Activities. FIL-16-2022 requested that all FDIC supervised institutions that intend to engage in, or that are currently engaged in, any activities involving or related to crypto-assets (also referred to as “digital assets”) promptly notify the appropriate FDIC Regional Director. During the May 27, 2022, FDIC examination, we requested initial information, and the bank provided additional information on August 8, 2022, which indicated plans were highly preliminary and dependent on development progress by XXXXX. Periodic conversations regarding development progress were also held with bank management in September 2022 (at which time management reported XXXXX development delays), and in November 2022, (at which time management reported XXXXX development had stalled and that management planned to follow-up with XXXXX to understand its options).

During a phone call on May 1, 2023, President XXXXX stated that the Board has indefinitely paused pursuing the proposed crypto-related activities. The FDIC acknowledges the bank’s updated status related to this activity. We request that you promptly notify this office if the status of this activity, or other crypto-related activity, changes.

This letter is confidential and may not be disclosed or made public in any manner under part 309 of the FDIC Rules and Regulations (12 CFR part 309). If you have any questions, please contact Case Manager XXXXX or Review Examiner XXXXX at XXXXX. Written correspondence should be addressed to my attention at the Kansas City Regional Office, and sent as a PDF document through the FDIC’s Secure Email portal (securemail.fdic.gov) using the following e-mail address: XXXXX@FDIC.gov.

Sincerely,

James D. LaPierre
Regional Director

cc: XXXXX