The Federal Deposit Insurance Corporation (FDIC) recently issued new guidance that allows supervised banks in the United States to partake in crypto-related activities without the need for prior approval, showcasing a significant shift in regulatory approach.
The guidance, detailed in the Financial Institution Letter (FIL-7-2025), rescinded a previous requirement for banks to notify the FDIC before engaging in any crypto-related operations. This move reflects a broader reevaluation of how federal agencies view digital assets within the banking sector.
Acting Chairman of the FDIC, Travis Hill, emphasized that this new guidance represents a departure from the more restrictive policies that have been in place over the past few years. Hill stated that this step is just one of many that the FDIC will take to outline a new framework for banks to participate in crypto- and blockchain-related activities while upholding safety and soundness standards.
Under the updated policy, FDIC-supervised banks are now permitted to offer crypto-related services as long as they effectively manage associated risks and adhere to existing regulations on safety and soundness. While banks are no longer required to seek prior approval, they must still notify the FDIC if they are currently involved in or plan to pursue crypto activities. The agency will review the information provided and may offer feedback or additional supervision as needed.
Despite this relaxation of prior approval requirements, the FDIC remains cautious about the potential risks associated with crypto-related activities, including market volatility, consumer protection, and anti-money laundering compliance. The agency will continue to collaborate with other regulatory bodies to refine its oversight of digital asset activities within the financial system.
This shift in regulatory approach comes in response to calls for clearer guidance on crypto integration from federal banking regulators. The FDIC has committed to working with other agencies to revise outdated interagency statements related to digital assets and banking.
While this change reduces regulatory friction, oversight remains a crucial component. Banks must demonstrate their ability to conduct crypto-related operations safely, protect customers, and comply with legal standards.
The FDIC’s decision to reconsider crypto restrictions follows pushback from the industry, with some banks reportedly receiving informal warnings to halt crypto services. This change aligns with a broader trend towards a more open stance on blockchain-based infrastructure and tokenized deposits.
Overall, the FDIC’s updated guidance signals a more transparent regulatory environment for banks looking to enter the crypto space. While procedural obstacles have been reduced, regulatory compliance and robust risk management remain essential for banks engaging in lawful digital asset services.