FDIC Clears Path for Bank Crypto Activities Without Prior Approval

Banks can deal with cryptocurrency and other legally permitted activities without requesting previous approval of the regulations, as long as they manage risks correctly, the Federal Deposit Insurance Corporation announced on Friday.

The policy change withdraws a requirement from 2022 imposed in the institutions competent by FDIC informing the agency before they have entered into crypto-related activities. According to the new guidelines, banks can offer services with digital assets without the prior permission of the agency.

“With today’s promotion, the FDIC is taking the page about the lack of approach of the past three years,” said FDIC -NAMPLEMENT CHAIL HILL in one rack. “I expect that this is one of the many steps that the FDIC will take to draw up a new approach for how banks can perform crypto and blockchain-related activities in accordance with safety and solidity standards.”

The relocation is in line with comparable actions by the office of the Currency of the Currency, which Earlier this month Again confirmed that national banks can undertake certain crypto activities, including guardianship services and stabilecoin transactions.

This legal shift marks a grim departure from the approach of the Biden administration to cryptocurrency and bank relationships. Documents issued Earlier this year, the Freedom of Information Act applications showed that the FDIC banks often prevented from offering crypto-related services, critics claimed.

The previous regulatory attitude had received criticism from legislators who started investigations into what some called “Operation ChokePoint 2.0”, a reference to an initiative from the Obama era that was aimed at certain industries, including firewells traders and payment day differences. Critics claimed that the Biden administration was in the same way aimed at the cryptocurrency industry by bank restrictions.

In his new letter from the financial institution (FIL-7-2025), The FDIC clarified that “FDIC-counseled institutions may be able to undertake permitted crypto-related activities without receiving earlier FDIC approval.”

The reversal follows months of pressure from cryptocurrency argues for and completes a considerable hinge in the federal banking policy. Representatives of the industry had accused supervisors of the use of informal printing tactics, including concerns about ‘reputation risk’, to discourage banks from operating cryptocurrency companies.

President and CEO of American Bankers Association Rob Nichols praised the decision. “We welcome the new guidance of FDIC with which supervision in institutions can participate in the allowed crypto-related activities without receiving earlier FDIC approval,” he said in an official statement. “The banks of America are actively evaluating ways to compete safely and responsibly in the ecosystem of the financial services, and this kind of regulatory clarity is crucial to improve innovation in space.”

The FDIC emphasized that banks still have to take into account different risks related to crypto activities, including market and liquidity risks, concerns about operational and cyber security, requirements for consumer protection and anti-money laundering obligations. The agency noted that institutions “should be employed with their supervisory team” when pursuing such activities.

Friday’s announcement comes as part of a broader effort from the Trump administration to remove obstacles for digital assets. In addition to the actions of the OCC, the government insists on a crypto reserve and taking actions to stimulate the local crypto ecosystem.

Although proponents of cryptocurrency welcomed the policy reputation, there remain challenges for the industry – which therefore means that not everyone is enthusiastic about this legal shift. “Holy Shit, the next Wall St. Crash will make us long for the good old days of the great depression,” said Justin Rosario, host of the political podcast ‘The Eigeneceated Ogre’.

Others expressed their concern about the abruptness of the change. “FDIC announces a robust new requirement to participate in Crypto activities: you need Pinky Swear”, bank adviser and expert Donald F. Billings written On LinkedIn.

The FDIC regulates and insure banks that keep trillions of dollars in deposits. The new attitude could possibly unlock considerable capital flows in the cryptocurrency sector, because banks re-assess their ability to serve digital activa companies and offer crypto-related products to customers.

Published by James Rubin