The Federal Deposit Insurance Corporation (FDIC) has issued new guidance, allowing banks to engage in crypto-related activities without prior approval.
New Guidelines for Banks
The FDIC has released guidance in the form of Financial Institution Letter (FIL-7-2025), rescinding a 2022 directive requiring banks to notify the FDIC before engaging in digital asset activities. Banks can now participate in crypto ventures as long as they effectively manage the associated risks.
Renewing Ties with Crypto Firms
The policy shift follows the release of 175 FDIC documents earlier this year, revealing the previous administration's efforts to pressure banks into cutting ties with crypto firms. Coinbase filed a lawsuit against the FDIC in 2024, alleging unfair practices. Acting FDIC Chairman Travis Hill noted that the agency is turning a new page on past approaches.
FDIC's Future Plans
The FDIC indicated it will continue working with the President’s Working Group on Digital Asset Markets and collaborate with other banking agencies to develop clearer guidance on crypto-related activities. The agency will also work with financial regulators to establish safety standards.
The FDIC's policy changes mark a more open approach to banks engaging with crypto partnerships, highlighting the need for clear risk management standards.
