NEWSLETTER
The Federal Deposit Insurance Corporation (Fdic) has <a target="_blank" href="https://www.fdic.gov/news/press-releases/2025/fdic-clarifies-process-banks-engage-crypto-related-activities” target=”_blank” rel=”noopener”>issued a new guide Allow banks that supervises to participate in bitcoin and cryptography activities without seeking prior approval. This reverses a controversial policy imposed under the Biden administration.
In a statement of March 28, the FDIC said that banks can now participate in cryptography related services such as custody and trade if they adequately administer the risks. The agency will also work to replace the old regulations with updated cryptographic orientation.
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The policy change occurred in a new letter from the financial institution that terminates the previous 2022 rules that require the banks to obtain authorization from the FDIC before handling the assets of bitcoin and crypto. That bureaucracy frustrated the bank industry.
By eliminating this barrier, the FDIC allows its supervised banks to experience with this emerging ecosystem more freely. However, specific permits will still depend on the coordination between agencies.
The interim president of the FDIC, Travis Hill, described the “one of several steps” movement to design a new friendly approach with safety centered cryptographic. He said: “The FDIC is changing the page in the defective approach of the last three years.” The agency expects to publish additional guidance, as it consults the president's work group on digital assets.
The main banks have recently launched the services of bitcoin and crypto despite the unclear regulations. Providing regulatory clarity will allow more banks to participate.
