The United States Federal Deposit Insurance Corporation (FDIC) has altered its previous policy that mandated banks to acquire pre-approval before partaking in cryptocurrency-related activities. The FDIC announced that this policy is now obsolete, as noted in the “laws and regulations” section of its official website.
FDIC-regulated institutions were informed about this change via a letter named “Notification of Engaging in Crypto-Related Activities,” which was disseminated on April 7, 2022. The regulatory body further clarified this new stance in a press release issued on March 28, 2025.
The press release affirmed that FDIC-supervised institutions can now undertake permissible crypto activities without the need for FDIC’s nod of approval. The statement read, “This FIL 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.”
The permissible activities encompass crypto and digital asset issuance, crypto-asset custody services, management of stablecoin reserves, and involvement in blockchain and distributed ledger-based settlement or payment systems, among others. However, the FDIC insists that the institutions must adhere to existing laws and regulations, and all activities must comply with FDIC policies and standards.
The organization also highlighted potential risks, such as liquidity, operational, market, and cybersecurity, and advised banks to satisfy consumer and anti-money requirements and coordinate with suitable supervisory teams.
As part of its effort to create regulatory clarity, the FDIC intends to work alongside the President’s Working Group on Digital Asset Markets to enhance banks’ involvement in certain crypto practices. It also plans to collaborate with banking agencies to substitute interagency documents relating to crypto-assets issued in January 2023 and February 2023 with future guidance or regulations.
In conclusion, this move by the FDIC could fortify the existing liaison between banks and the wider crypto industry, paving the way for banks to expand their crypto-related services and products.
