The FDIC is revising its guidelines, allowing U.S. banks to engage with cryptocurrency businesses without seeking prior regulatory permission.
Why Is the FDIC Changing Its Approach?
Acting FDIC Chairman Travis Hill revealed that the agency is reevaluating its stance on digital assets. Past policies created a hostile environment for banks exploring blockchain and cryptocurrency. The FDIC released 175 documents detailing past interactions with banks regarding crypto activities.
Past Restrictions and Legal Battles
Banks wanting to work with crypto firms faced bureaucratic resistance. FDIC's past communications show delayed responses and 'pause letters' urging banks to stop crypto engagement. Coinbase's lawsuit under the FOIA forced FDIC to release documents, confirming active discouragement of bank support for crypto businesses.
What Does This Mean for Crypto and Banking?
With the FDIC now revising its policies, banks may soon offer crypto services without special approval and form partnerships with blockchain firms without hurdles. The Senate is also involved, with both Democrats and Republicans concerned over previous policies that unfairly targeted crypto firms.
FDIC's guideline changes may significantly ease the provision of blockchain and crypto services by banks, balancing innovation and financial stability.
