Catenaa, Wednesday, April 02, 2025-The Federal Deposit Insurance Corporation (FDIC) on Friday reversed its previous stance on digital assets, announcing that financial institutions can engage in crypto-related activities without prior approval from the agency.
The FDIC said it is rescinding earlier guidance that required supervised institutions to notify the agency before engaging in cryptocurrency activities. The move signals a shift in regulatory policy under the Trump administration.
“With today’s action, the FDIC is turning the page on the flawed approach of the past three years,” Acting Chair Travis Hill said. “This is one of several steps the FDIC will take to create a framework for banks to engage in crypto and blockchain-related activities while maintaining safety and soundness standards.”
The FDIC had previously warned that crypto posed risks to the banking system. In 2022, it issued a Financial Institution Letter instructing banks to inform regulators about their crypto involvement. That requirement has now been lifted.
The agency also moved to eliminate “reputational risk” as a factor in supervising banks. Crypto firms have long claimed they were unfairly denied access to financial services under prior rules.
President Donald Trump has criticized the Biden administration’s handling of cryptocurrency regulation, arguing it restricted banking access for crypto businesses. Bo Hines, executive director of the President’s Council of Advisers for Digital Assets, called the FDIC’s decision “another big win” for the industry.
