LevelField Financial has secured conditional regulatory approval to acquire Chicago-based Burling Bank, positioning the digital asset firm to become the first FDIC-insured bank offering cryptocurrency services nationwide. This landmark acquisition, approved by the Illinois Department of Financial and Professional Regulation, represents one of the most significant crypto-banking mergers in recent months and could fundamentally reshape how Americans access digital assets through traditional banking channels.
about LevelField to Become First FDIC-Insured Crypto BankFederal Deposit Insurance Corporation
0 in Finance and 0 in Crypto last weekFDIC Plans Stablecoin Rules and Tokenized Deposit Insurance
The Federal Deposit Insurance Corporation is taking decisive steps to bring regulatory clarity to the digital asset space, with Acting Chair Travis Hill announcing plans for both a stablecoin application framework and forthcoming guidance on tokenized deposit insurance. These initiatives, revealed at the Federal Reserve Bank of Philadelphia’s Fintech Conference, represent a significant advancement in integrating traditional banking safeguards with emerging financial technologies, signaling the FDIC’s commitment to modernizing financial regulation while maintaining consumer protections.
about FDIC Plans Stablecoin Rules and Tokenized Deposit InsuranceTrump Nominates Travis Hill as FDIC Chair, Crypto Advocate
President Donald Trump has formally nominated acting FDIC Chair Travis Hill to lead the banking regulator for a full five-year term, signaling potential continuity in the agency’s approach to digital assets. Hill, who has served as acting chair since January, has already established himself as a proponent of clearer crypto guidance and has pushed back against allegations of systematic debanking in the financial sector. His nomination now moves to the Senate Banking Committee for confirmation, where his regulatory philosophy toward digital assets and tokenization will likely face scrutiny.
about Trump Nominates Travis Hill as FDIC Chair, Crypto AdvocateFed Ends Special Crypto Oversight, Integrates into Standard Processes
The Federal Reserve is sunsetting its Novel Activities Supervision Program, established in 2023 to monitor banks’ crypto and fintech activities, and will now oversee these areas through standard supervisory channels. The program enhanced the Fed’s understanding of crypto-related risks and bank management practices, which will now be incorporated into regular oversight. This decision follows other pro-crypto regulatory changes this year, including the removal of reputational risk from bank supervision and coordinated guidance on crypto custody. Fed Chair Jerome Powell has advocated for clearer frameworks, signaling a move toward accommodating responsible innovation in crypto banking. The shift reflects regulators’ growing confidence in managing digital asset risks and marks a broader normalization of crypto banking supervision.
about Fed Ends Special Crypto Oversight, Integrates into Standard ProcessesFed Backs Banks in Crypto Services with Clear Guidelines
Federal Reserve Chair Jerome Powell confirmed during a congressional testimony that U.S. banks are permitted to offer cryptocurrency services, as long as they comply with established risk management and consumer protection protocols. This follows the Fed’s removal of ‘reputational risk’ from its supervision framework, a move that aligns it with the FDIC and OCC. The policy shift aims to eliminate opaque barriers that previously hindered crypto firms’ access to banking services. Powell emphasized the Fed’s support for ‘responsible innovation’ while maintaining strict oversight on financial risks. Despite this openness, Powell hinted at potential interest rate cuts later in 2024, even amid persistent inflation concerns. Industry experts view these changes as a milestone for crypto integration into traditional finance.
about Fed Backs Banks in Crypto Services with Clear GuidelinesFed Drops Reputational Risk Rule, Boosting Crypto Access
The US Federal Reserve announced it will eliminate ‘reputational risk’ as a factor in bank supervision, a decision that could significantly benefit crypto companies previously denied banking services. This change follows similar actions by other regulators like the OCC and FDIC, marking a shift from the Biden administration’s restrictive policies under Operation Chokepoint 2.0. The House Financial Services Committee praised the move, linking it to the FIRM Act aimed at limiting regulatory overreach. Industry experts view this as a critical step toward normalizing crypto-bank relationships, though debanking remains a global issue, particularly in regions with stringent KYC requirements.
about Fed Drops Reputational Risk Rule, Boosting Crypto AccessChase Bank Sued Over $185K Account Freeze, Life Disrupted
Brian Adesman, a 32-year-old lawyer, alleges Chase Bank abruptly closed his personal and business accounts, withholding $185,000 without explanation. The freeze reportedly caused severe financial distress, including missed mortgage payments and a canceled wedding. Adesman filed complaints with multiple regulators but remains in a year-long battle for restitution. Chase claims it acted due to suspicious transactions, referencing a separate fraud case involving $3.7 million deposited into Adesman’s firm—though he denies any connection. Despite Chase’s promise to return $175,649, Adesman says he never received the funds. The case highlights tensions between banks’ fraud safeguards and customer rights.
about Chase Bank Sued Over $185K Account Freeze, Life DisruptedSenate GENIUS Act Faces Democratic Pushback, Jeopardizing Crypto Rules
The GENIUS Act, aimed at establishing federal stablecoin regulations, is at risk due to opposition from nine Senate Democrats who demand stricter safeguards. Initially advancing with bipartisan support, the bill now faces hurdles over unresolved issues like AML compliance and foreign issuer oversight. Failure to pass it could delay broader crypto legislation, leaving stablecoin issuers without uniform standards and stalling blockchain integration with traditional finance. Updated provisions address some concerns, but Democratic resistance highlights the challenge of balancing innovation with financial stability. The bill’s fate hinges on revisions that satisfy critics without losing bipartisan backing.
about Senate GENIUS Act Faces Democratic Pushback, Jeopardizing Crypto RulesMorgan Stanley & Charles Schwab Eye Crypto Trading Amid Eased US Rules
Morgan Stanley plans to introduce spot crypto trading on its E*Trade platform by 2026, expanding access beyond high-net-worth clients to retail investors. Charles Schwab is also preparing for direct spot crypto trading, with CEO Rick Wurster targeting a launch within 12 months. These developments follow significant US regulatory changes, including the SEC repealing restrictive accounting rules and the Federal Reserve relaxing crypto partnership requirements for banks. The FDIC and OCC have similarly eased guidelines, encouraging traditional financial institutions to enter the crypto space. This regulatory shift is reshaping the financial landscape, with crypto-native firms seeking banking licenses and legacy institutions adapting to remain competitive.
about Morgan Stanley & Charles Schwab Eye Crypto Trading Amid Eased US RulesFed Eases Crypto Rules for US Banks, Withdraws Key Letters
The Federal Reserve Board has rescinded two major supervisory letters from 2022 and 2023 that required US banks to notify regulators before conducting crypto-related activities. This decision removes previous restrictions and aligns with recent policy shifts from other banking regulators like the OCC. The withdrawn letters had mandated banks to demonstrate risk management practices and obtain supervisory approval for crypto activities. The Fed stated it will now monitor crypto through normal supervisory processes rather than special requirements. This regulatory easing comes amid broader changes in banking policy toward digital assets, including the OCC’s recent reversal on crypto holdings for national banks. The Fed hinted at future interagency collaboration to provide guidance without stifling innovation in the crypto space.
about Fed Eases Crypto Rules for US Banks, Withdraws Key LettersSEC Pressures DeFi Founders to Settle and Leave Crypto Industry Forever
The SEC, under former chair Gary Gensler, allegedly pressured decentralized finance founders into settlements that included clauses preventing them from working in crypto again, according to Founders Fund partner Joey Krug. He claimed that many founders were coerced into these agreements under threat of jail, despite not having broken any laws. The SEC’s longstanding “gag rule” further complicates the situation, as it restricts defendants from publicly discussing their cases.
about SEC Pressures DeFi Founders to Settle and Leave Crypto Industry ForeverElizabeth Warren and Donald Trump Unite to Address Crypto Debanking Issues
Senator Elizabeth Warren has shifted her stance on crypto regulation, now pledging to collaborate with former President Donald Trump to address the issue of debanking in the crypto industry. This comes amid revelations of banking restrictions on crypto-related businesses that predate the Trump administration. Warren’s new focus on investigating banks that deny services to crypto firms marks a significant change from her previous skepticism, suggesting potential shifts in the regulatory landscape as both she and Trump navigate this complex issue.
about Elizabeth Warren and Donald Trump Unite to Address Crypto Debanking Issues