The FDIC has officially reversed the rule requiring banks to get prior approval for engaging in cryptocurrencies. This marks a new phase in the relationship between the banking sector and the crypto industry.
Context and Reasons for Reversal
The FDIC has long played a significant role in crypto debanking issues, placing restrictions on banks engaging with digital assets. However, the new leadership appointed under President Trump has decided to revisit this approach, deeming it ineffective.
Reactions to the New Approach
FDIC Acting Chairman Travis Hill stated that this is just the first step in crafting a new approach for bank operations in the cryptocurrency field. Bo Hines, head of the White House’s digital assets advisory council, supported this change, calling it a "huge step forward."
Future of Crypto Collaboration
The rule reversal coincides with the Office of the Comptroller of the Currency's recent reconsideration of its 2022 guidance. This decision signals a shift in how regulators view digital assets, moving towards a more positive outlook. Previous guidance was introduced during challenging times for the industry, marked by company failures and cases of fraud.
The end of the prior approval rule may become a pivotal point for banks and the crypto industry, fostering closer cooperation and development.
