FDIC Discontinues Previous Policy Requiring Prior Approvals for Crypto Banking
The U.S. Federal Deposit Insurance Corporation has announced new guidance that eliminates the need for banks to seek prior approvals before engaging in cryptocurrency activities, reversing earlier strict regulations.
The Federal Deposit Insurance Corporation (FDIC) has rolled out a revised crypto policy, discarding the previous requirement that mandated banks to secure regulatory authorization before initiating crypto activities.
Key Highlights:
- The FDIC will no longer require prior approval from banks to engage in crypto-related operations, a policy first enforced in 2022 that effectively alienated banks from digital assets while awaiting nods that never materialized.
- This decision follows a similar adjustment by the Office of the Comptroller of the Currency.
- Regulatory changes, driven by President Donald Trump’s administration, are rapidly dismantling former hesitance in U.S. governmental attitudes towards cryptocurrencies.
In a statement, Acting Chairman Travis Hill commented, “With today’s action, the FDIC is turning the page on the flawed approach of the past three years… This will lay out a new approach for how banks can engage with crypto and blockchain activities while adhering to safety standards.”
Banks previously expecting to receive pre-approval for crypto activities can now proceed with their operations while properly assessing risks.
Read More: OCC Says Banks Can Engage in Crypto Custody and Certain Stablecoin Activities
