Bank Withdraws Crypto Activity Plan

FDIC
Federal Deposit Insurance Corporation
25 Jessie Street at Ecker Square, Suite 2300 San
Francisco, California 94105

Division of Risk Management Supervision
San Francisco Regional Office
(415) 546-0160

October 13, 2023

Board of Directors
XXXXX

Subject: Notification of Engagement in Crypto-Related Activities

Dear Members of the Board:

The FDIC acknowledges the notification provided by XXXXX (the Bank) on March 24, 2023, regarding the Bank's intention to provide deposit accounts and related services to an existing customer’s business that operates within the crypto-asset space. 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.

On April 26, 2023, FDIC Case Manager XXXXX sent an email to President XXXXX, requesting additional information to better understand the nature of the proposed activity. In a follow up telephone conversation on August 2, 2023, with Case Manager XXXXX, President XXXXX communicated that the Bank is no longer pursuing the proposed activity. President XXXXX also communicated that he will notify the FDIC if the Bank considers engaging in any crypto-related activity going forward.

If you have any questions, please contact Risk Management Supervision (RMS) Acting Assistant Regional Director Justin Shaffer at XXXXX, RMS Case Manager XXXXX at XXXXX, or Depositor and Consumer Protection (DCP) Assistant Regional Director Susan Pinette at XXXXX or DCP Acting Review Examiner XXXXX at XXXXX.

Sincerely,

/s/ Louis C.C. Cheng
/s/ Dana Crutchfield

Louis C.C. Cheng
RMS Acting Deputy Regional Director

Dana Crutchfield
DCP Deputy Regional Director

This letter is confidential and may not be disclosed or made public in any manner. Additional information regarding these confidentiality restrictions may be found in Part 309 of the FDIC Rules and Regulations. Please notify us immediately if you receive a subpoena or other legal process calling for the production of this letter or a description of its content.

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