FDIC rescinds policy that hindered banks’ crypto participation

FDIC has released a new crypto policy, scrapping a previous guidance that curtailed engagement in crypto activity.
The US banking agency issued the new guidance in a press release on March 20, 2025

The US Federal Deposit Insurance Corporation (FDIC) announced on Friday, March 28, 2025, that it is rescinding previous guidance requiring banks to notify the agency before engaging in crypto-related activities.

It is a fresh approach under the President Donald Trump’s administration, one that aims to streamline how financial institutions interact with digital assets and blockchain technology.

FDIC reverses policy on crypto

The US banking agency’s about turn means banks and other supervised financial institutions do not need to report their current and planned crypto-related activities. Previously, this was the case, with the FDIC citing potential risks to the stability of the U.S. banking system. The guidance was in the regulator’s Financial Institution Letter (FIL-16-2022), issued in April 2022.

However, the new guidance eliminates this requirement, allowing FDIC-supervised banks to pursue permissible crypto-related activities without prior agency approval.

“The FDIC is rescinding FIL-16-2022 and providing new guidance to clarify that FDIC-supervised institutions may engage in permissible crypto-related activities without receiving prior FDIC approval,” reads a statement from the FDIC.

The decision reflects a broader push to adapt regulatory frameworks to the evolving digital asset landscape while maintaining oversight to ensure financial stability. The agency emphasized that while banks are now free to explore these activities independently, they must still adhere to existing safety and soundness principles—a balance intended to foster innovation without compromising the integrity of the banking system

“With today’s action, the FDIC is turning the page on the flawed approach of the past three years,” said FDIC acting chairman Travis Hill. “I expect this to be one of several steps the FDIC will take to lay out a new approach for how banks can engage in crypto- and blockchain-related activities in accordance with safety and soundness standards.”

The announcement is one of positive crypto events today, with this coming after Trump’s pardoning of three co-founders of BitMEX crypto exchange.