In a significant shift in regulatory policy, the Federal Deposit Insurance Corporation (FDIC) has rescinded its earlier guidance that mandated banks to notify the agency before engaging in crypto-related activities. This change, announced on March 28, 2025, aligns with a broader trend among federal banking regulators to ease restrictions on digital asset involvement. The new guidance clarifies that FDIC-supervised institutions may engage in permissible crypto-related activities without prior approval, provided they adequately manage associated risks.
A New Regulatory Landscape
The FDIC’s decision marks a departure from its previous stance, which required banks to seek approval before participating in crypto-related activities. Acting Chairman Travis Hill stated, “With today’s action, the FDIC is turning the page on the flawed approach of the past three years.” This move is part of a broader effort by federal banking agencies to accommodate banks’ involvement in crypto-related activities. For instance, the Office of the Comptroller of the Currency (OCC) had previously rescinded similar guidance, allowing national banks and federal savings associations to engage in crypto-related activities without prior approval.
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Implications for Banks and the Crypto Industry
This regulatory shift is expected to have significant implications for banks and the cryptocurrency industry. Banks now have greater autonomy to explore and engage in crypto-related activities, potentially leading to increased innovation and competition in the financial sector. However, the FDIC emphasized that banks must conduct these activities in a safe and sound manner, adhering to applicable laws and regulations. The agency also highlighted the importance of managing risks associated with crypto-related activities, including market and liquidity risks, operational and cybersecurity risks, consumer protection requirements, and anti-money laundering requirements.
Looking Ahead
The FDIC has indicated that it will continue to engage with the President’s Working Group on Digital Asset Markets and expects to issue further guidance in the future to provide additional clarity regarding banks’ engagement in particular crypto-related activities. The agency also plans to work with other banking agencies to replace interagency documents related to crypto-assets with further guidance or regulations. As the regulatory landscape continues to evolve, banks and the crypto industry will need to stay informed and adapt to new guidelines and requirements.
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 Notification Guidance for Crypto Activities. ABA Banking Journal. March 28, 2025. (bankingjournal.aba.com)
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Federal Banking Regulators Adopt a Permissive Stance on Cryptocurrency. FinTech and Blockchain Law Watch. April 29, 2025. (fintechlawblog.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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Federal Reserve and FDIC Withdraw Crypto-Asset Guidance for Banks; OCC Issues Clarification for Banks. Greenberg Traurig LLP. May 2025. (gtlaw.com)
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FDIC Clarifies Process for Banks to Engage in Crypto-Related Activities. Compliance Alliance. March 30, 2025. (compliancealliance.com)
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Federal Banking Agencies Take Steps to Accommodate Banks’ Involvement in Crypto-Related Activities. Simpson Thacher & Bartlett LLP. April 28, 2025. (stblaw.com)
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Banks May Engage in Some Crypto Activities Without Prior Notice Says FDIC. Dechert LLP. April 22, 2025. (dechert.com)
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Federal Banking Agencies Clarify Approach To Bank-Permissible Crypto-Asset Activities. Mondaq. April 2025. (mondaq.com)
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Crypto Clarity: OCC’s New Guidelines Pave the Way for Banking Innovation. Consumer Finance Monitor. March 26, 2025. (consumerfinancemonitor.com)
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