FDIC Ends Requirement for Banks to Seek Crypto Activity Approvals
The Federal Deposit Insurance Corp. (FDIC) will no longer require banks to obtain prior approval before engaging in crypto activities. This change addresses a 2022 directive that hindered banks from participating in the digital asset sector due to prolonged approval processes.
Key points include:
- The FDIC has played a significant role in regulating banks involved with cryptocurrencies, especially during a recent legal dispute with Coinbase.
- Previous guidance led banks to avoid new crypto matters while awaiting regulatory policies, which were never finalized.
- This shift follows leadership changes at the FDIC favoring a more crypto-friendly approach under President Donald Trump.
- FDIC Acting Chairman Travis Hill stated this action reflects a new direction for banks to engage safely in crypto-related activities.
- Banks can now proceed with crypto initiatives if they adequately assess associated risks.
- Similar guidance rescinded by the Office of the Comptroller of the Currency (OCC) indicates a broader trend among U.S. banking agencies towards allowing crypto engagement.