The FDIC has decided to revise its policies, allowing US banks to engage with cryptocurrency businesses without prior regulatory permission.
Why Is the FDIC Changing Its Approach?
Acting Chairman Travis Hill announced that the FDIC is reevaluating its stance on digital assets. This decision comes as past policies created a hostile environment for banks exploring blockchain and cryptocurrency.
Past Restrictions and Legal Battles
In the past, banks wanting to work with cryptocurrencies faced bureaucratic resistance from the FDIC. Many banks waited months for responses and were often instructed to halt crypto operations. Coinbase sued the FDIC in 2024, forcing it to release documents that confirmed its discouragement of bank support for crypto firms.
What Does This Mean for Crypto and Banking?
Now, with FDIC's policy revision, banks may offer crypto-related services without needing special approval and form partnerships with blockchain firms without regulatory roadblocks. Hill emphasized that the FDIC's new approach will balance innovation with regulatory safeguards.
The FDIC's policy change could significantly alter the landscape of banking and cryptocurrency services in the US, opening new opportunities for financial institutions.
