- The FDIC announced on Friday that its supervised banks can now engage in certain crypto-related activities, like using digital assets or blockchain, without prior approval, as long as risks are well-managed, marking a shift from the restrictive policies of the past three years.
- Acting Chairman Travis Hill highlighted this as the first of several steps to clarify how banks can safely adopt crypto and blockchain, with the FDIC collaborating with other regulators and the President’s Working Group to update guidance and replace outdated interagency crypto documents
The Federal Deposit Insurance Corporation (FDIC) made a significant move on Friday that’s opening doors for banks interested in the world of cryptocurrency, announcing through a Financial Institution Letter that FDIC-supervised banks can now dive into certain crypto-related activities without needing prior approval. This shift is a big deal for the banking industry, especially for the roughly 4,600 banks under FDIC oversight, as it means they can explore digital assets – like cryptocurrencies or blockchain-based tools – without jumping through extra regulatory hoops, as long as they handle the risks smartly. FDIC Acting Chairman Travis Hill called this a fresh start, moving away from the restrictive stance of the past three years and hinting that more updates are on the way to help banks safely navigate this space.
This new guidance doesn’t mean banks can do whatever they want with crypto—it’s about balance. They’re free to experiment with permissible activities, like offering crypto services or using blockchain tech, but they’ve got to keep risks like fraud or market swings in check. The FDIC isn’t going it alone either; they’re teaming up with the President’s Working Group on Digital Asset Markets and other banking regulators to refine the rules further. Think of it as a framework that’s evolving—more clarity is coming, and old interagency crypto documents will soon be replaced with updated guidance or regulations. For everyday folks, this could mean more banks offering crypto-friendly services, like holding digital wallets or processing blockchain payments, all while keeping safety first. It’s a practical step toward blending traditional banking with the fast-moving digital world.
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