The U.S. Federal Deposit Insurance Corporation (FDIC) has revisited a policy that once required banks to seek pre-approval before engaging in crypto-related activities. Updating this policy, the FDIC stated that the policy has now been rescinded on the “laws and regulations” column on its website. The FDIC notified institutions under its supervision of the new development in a letter titled “Notification of Engaging in Crypto-Related Activities,” issued on April 7, 2022. In the press release published on March 28, 2025, the federal regulator clarified that FDIC-supervised institutions are now free to engage in permissible crypto-activity without FDIC approval. Excerpts from the press release read; “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, provided that they adequately manage the associated risks.” Highlighted crypto activities include crypto and digital asset issuance, crypto-asset custody services, maintenance of stablecoin reserves, and participation in blockchain and distributed ledger-based settlement or payment systems, amongst others. However, eligible institutions are still expected to abide by laws and regulations, as the regulator asserts that all activities must be conducted in accordance with FDIC policies and standards. The regulator further warns of liquidity, operational, market, and cybersecurity risks and suggests that banks consider consumer and anti-money requirements and engage with appropriate supervisory teams. Outlining its plans for establishing regulatory clarity, the FDIC stated its intentions to collaborate with the President’s Working Group on Digital Asset Markets to further banks’ engagement in certain crypto-related practices. Conclusively, the FDIC reveals that it will work with banking agencies to replace interagency documents relating to crypto-assets issued in January 2023 and February 2023 with future guidance or regulations. In the long term, the new development could strengthen the existing relationship between banks and the broader cryptocurrency industry, allowing banks to increase their crypto-related services and offerings.
