U.S. Regulation

FDIC Opens Doors for Banks to Engage in Crypto Activities

The Federal Deposit Insurance Corporation (FDIC) has released new guidance (FIL-7-2025) that permits banks under its supervision to conduct crypto-related business without advance approval. The change is a policy shift as it revokes the earlier guidance (FIL-16-2022) that mandated banks to obtain FDIC approval prior to dealing in cryptocurrencies. The FDIC explained that financial institutions can engage in crypto-related operations provided they manage risks appropriately. This covers digital assets and new blockchain technologies.
Acting FDIC Chairman Travis Hill said that the change moves away from the restrictive stance of the past three years and indicates a more open approach toward crypto innovation in banking. He also teased additional measures to clarify how banks can safely interact with crypto and blockchain-related companies.
The FDIC will continue working with the President’s Working Group on Digital Asset Markets and plans to issue more guidance to ensure banks understand the risks and regulations surrounding crypto-related activities.
Additionally, the FDIC will collaborate with other banking regulators to update outdated interagency documents related to digital assets. This policy shift is seen as a positive development for banks and financial institutions looking to explore cryptocy services. It reduces regulatory hurdles while still emphasizing risk management and compliance. The shift may prompt more banks to provide crypto-related products, including custody services, trading, and payments via blockchain technology.
Terron Gold

Recent Posts

Federal Reserve Moves to Tighten Stablecoin Oversight With New Customer Identification Requirements

The Federal Reserve has unveiled a new proposed rule that would require certain payment stablecoin issuers to…

7 days ago

HIVE Stock Surges 10% After Landing $220 Million Sovereign AI Infrastructure Deal in Canada

Shares of HIVE Digital Technologies jumped more than 10% after the company announced a major $220 million, three-year…

1 week ago

Illinois Becomes First State to Tax Bitcoin and Crypto Transactions as Critics Call It the Most Punitive Crypto Tax in America

Illinois has officially become the first U.S. state to impose a transaction-based tax on cryptocy activity…

1 week ago

FOMC Rate Decision Triggers $122 Million Crypto Liquidation Cascade as Bitcoin and Ethereum Slide

The cryptocy market was hit by a sharp wave of volatility after the Federal Open Market…

1 week ago

Algorand Targets Full Quantum Resistance by 2027 as Blockchain Industry Faces Growing Quantum Threat

Algorand is accelerating its push toward becoming one of the world's first fully quantum-resistant blockchains, announcing…

1 week ago

CLARITY Act Gains Momentum as Senate Prepares for Critical Post-Recess Vote

The long-awaited Digital Asset Market CLARITY Act is moving closer to becoming law as momentum continues building…

1 week ago