US banks can now enter crypto without FDIC pre-approval

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Published 31 Mar 2025

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The Federal Deposit Insurance Corporation (FDIC) announced Friday that banks no longer need prior approval to engage in crypto-related activities. This change opens doors for banks to work with digital currencies while still keeping some oversight.

“With today’s action, the FDIC is turning the page on the flawed approach of the past three years,” said FDIC Acting Chairman Travis Hill in a statement on March 28.

    Banks may now handle cryptocurrency custody, manage stablecoin reserves, and participate in blockchain payment systems without getting pre-approval. However, the FDIC will still require banks to notify them about crypto activities. Officials stressed that banks must show they can manage risks related to consumer protection and financial stability.

    “FDIC-supervised institutions may engage in permissible activities, including activities involving new and emerging technologies such as cryptoassets and digital assets, provided that they adequately manage the associated risks,” the agency explained.

    The policy change cancels a 2022 rule that forced banks to get permission before dealing with cryptocurrencies or blockchain technology.

    The old restrictions faced criticism from banking groups and crypto supporters. They argued regulators were blocking legitimate blockchain innovation through paperwork barriers. A lawsuit by Coinbase recently showed letters where the FDIC actively discouraged banks from working with crypto under the previous policy.

    This regulatory adjustment follows similar moves by the Office of the Comptroller of the Currency (OCC) earlier this month. Both changes reflect the Trump administration’s more friendly approach to crypto.

    David Sacks, White House AI and Crypto Advisor, called the OCC’s decision “a big win for crypto” on social media. He praised removing “reputational risk” as a factor in how banks are supervised.

    The FDIC is also working with other regulatory agencies to update outdated guidance. Hill said this policy change is “one of several steps the FDIC will take” for banks engaging with blockchain and crypto technologies.

    Financial institutions still face supervision and must follow safety standards, anti-money laundering laws, and consumer protection rules when working with digital assets.