In what is a landmark development for the asset class, the Federal Deposit Insurance Corp. (FDIC) announced that banks can now engage in crypto activities without prior approval. Indeed, a statement released Friday announced an official rescindment of FIL-16-2022, offering new guidance to institutions.
The decision shifts the standard for FDIC-supervised banks regarding their digital asset exposure. Within the statement, the US government agency will allow participation in the cryptocurrency sector “provided that they adequately manage associated risks.”
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FDIC says banks can engage in crypto activities without prior approval.
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FDIC Releases New Guidance That Changes How Banks Engage With the Crypto Market
Although we are just three months into the year, 2025 has proven to be monumental for the cryptocurrency sector. Specifically, the United States has completely shifted its crypto policy. With Donald Trump returning to the White House, he has brought with him a desire to make the nation the crypto capital of the world.
Those efforts have continued today. As the US government continues to express solidarity on this issue, the FDIC has released a statement confirming that banks can now engage with crypto without needing prior approval. Indeed, the shift is a monumental turn for how these institutions participate in the asset class moving forward.
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According to the announcement, the FDIC announced it is rescinding previously offered guidance. Specifically, in April of 2022, it issued an institution letter titled “Notification of Engaging in Crypto-Related Activities,” giving new requirements for supervised banks. That has now been replaced by new guidance issued under the current administration.
“This FIL affirms that FDIC-supervised institutions may engage in permissible activities, including activities involving new and emerging technologies such as crypto-assets and digital assets,” they said in a Friday statement. Additionally, they only urged these institutions to “conduct all activities in a safe and sound manner and consistent with all applicable laws and regulations.”
