The Federal Deposit Insurance Corporation (FDIC) has reversed its previous policy, requiring banks to seek permission before engaging in crypto activities. Banks may now offer crypto and other legally permitted services without obtaining prior regulatory approval.
The crypto regulatory environment in the US received a welcomed policy reversal from the FDIC on Friday. Banks can now offer crypto services without prior regulatory approval if they manage the associated risks.
Righting Previously “Flawed” Regulatory Approaches
The Federal Deposit Insurance Corporation (FDIC) issued a Financial Institution Letter (FIL-7-250) on Friday offering new guidance for FDIC-supervised institutions engaged or looking to engage in crypto-related activities. FIL-7-2025 reverses the agency’s 2022 guidelines requiring all FDIC-supervised institutions that intend to engage or are currently involved in crypto-related activities to notify the FDIC. Under the new guidelines, banks may offer digital asset-related services without prior permission from the FDIC.
In a press release, the agency clarified:
“The guidance affirms that FDIC-supervised institutions may engage in permissible activities, including activities involving new and emerging technologies such as crypto-assets and digital assets, provided that they adequately manage the associated risks.”
FDIC Acting Chairman Travis Hill commented on the policy reversal, explaining the move as part of a new approach to how banks can engage in crypto services according to safety standards. He explained:
“With today’s action, the FDIC is turning the page on the flawed approach of the past three years.”
Adding;
“I expect this to be one of several steps the FDIC will take to lay out a new approach for how banks can engage in crypto and blockchain-related activities in accordance with safety and soundness standards.”
Broader Effort from the Trump Administration
The FDIC’s newly issued guidelines come amid the Trump Administration’s concerted effort to allow more effortless engagement with digital assets. Donald Trump emerged as a vocal pro-crypto during the 2024 election and has introduced several reforms to the crypto industry since taking office in January 2025. The President signed an executive order pushing for a Strategic Crypto Reserve and has taken several steps to remove regulatory hurdles in the industry. Under the new administration, the US Securities and Exchange Commission (SEC) has stepped away from its previous crackdown on crypto and crypto-related companies, which devasted the industry under former Chairman Gary Gensler.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.