In a landmark decision, the Federal Deposit Insurance Corporation (FDIC) has rescinded its previous guidance that required banks to obtain prior approval before engaging in cryptocurrency-related activities. This policy reversal marks a significant shift in the regulatory landscape, reflecting a more accommodating stance toward digital assets within the banking sector.
Policy Shift and Its Implications
The FDIC’s new guidance, issued on March 28, 2025, clarifies that FDIC-supervised institutions can now engage in permissible crypto-related activities without seeking prior approval. Acting FDIC Chairman Travis Hill emphasized the agency’s departure from its previous cautious approach, stating, “With today’s action, the FDIC is turning the page on the flawed approach of the past three years.” (axios.com)
This policy change allows banks to participate in various crypto activities, including acting as custodians of crypto assets, maintaining stablecoin reserves, issuing digital assets, and engaging in blockchain-based payment systems. However, the FDIC underscores the importance of robust risk management practices. Institutions must consider potential risks such as market volatility, cybersecurity threats, and compliance with consumer protection and anti-money laundering regulations. (fdic.gov)
Assistance with token financing
Alignment with Broader Regulatory Trends
The FDIC’s decision aligns with similar moves by other U.S. banking regulators. In March 2025, the Office of the Comptroller of the Currency (OCC) also rescinded its prior guidance, allowing national banks to engage in specific crypto activities without prior approval. This coordinated shift reflects a broader trend toward integrating digital assets into the traditional banking system. (reuters.com)
Industry Reactions and Future Outlook
Industry leaders have welcomed the FDIC’s updated stance. The American Bankers Association (ABA) praised the clarity provided by the new guidance, emphasizing that streamlined regulations enable banks to confidently explore cryptocurrency services. (americanbanker.com)
Looking ahead, the FDIC plans to collaborate with other banking agencies to replace interagency documents related to crypto-assets with further guidance or regulations. This ongoing engagement aims to provide additional clarity regarding banks’ involvement in crypto-related activities, fostering a more supportive environment for innovation in the digital asset space. (fdic.gov)
References
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FDIC Clarifies Process for Banks to Engage in Crypto-Related Activities. Federal Deposit Insurance Corporation. March 28, 2025. (fdic.gov)
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FDIC rescinds guidance around banks and crypto. Axios. March 28, 2025. (axios.com)
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FDIC says banks can engage in crypto activities without prior approval. Reuters. March 28, 2025. (reuters.com)
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US bank regulators pull back guardrails on bank crypto activities. Reuters. April 24, 2025. (reuters.com)
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The Fed withdraws its guidance on bank crypto-related activities. Axios. April 24, 2025. (axios.com)
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FDIC: Banks Can Engage in Crypto-Related Activities Without Prior Notice. Cooley. April 2, 2025. (cooley.com)
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FDIC, Following OCC, Loosens Guidance for Banks to Engage in Certain Crypto-Related Activities Without Receiving Prior FDIC Approval. Steptoe. April 1, 2025. (steptoe.com)
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Key FDIC Hurdle Removed for US Banks Offering Crypto. CoinEdition. March 28, 2025. (coinedition.com)
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FDIC Says Banks Can Engage in Crypto Activities Without Prior Approval. Genfinity. March 28, 2025. (genfinity.io)
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FDIC Updates Crypto Guidance, Removes Pre-Approval Requirement for Banks. Consumer Finance and Fintech Blog. April 2025. (consumerfinanceandfintechblog.com)
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FDIC Streamlines Process for Cryptocurrency Activities by Banks It Regulates and Speculates on Additional Permissible Activities. Mayer Brown. April 2025. (mayerbrown.com)
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Regulatory momentum builds: FDIC eases path to crypto for banks. Elliptic. April 2025. (elliptic.co)
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FDIC rescinds crypto notification requirement and issues new guidance. Willkie Compliance Concourse. April 3, 2025. (complianceconcourse.willkie.com)
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FDIC drops pre-approval for banks’ crypto activities. American Banker. March 31, 2025. (americanbanker.com)
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US regulator clears path for banks to engage in some crypto activities. Reuters. March 7, 2025. (reuters.com)
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