FDIC Eases crypto Restrictions for Banks
The Federal Deposit Insurance Corporation (FDIC) has updated its rules. Now, FDIC-supervised banks can engage in crypto activities without extra approval. This change reverses older, stricter policies.
The new guidance, in FIL-7-2025, cancels a 2022 rule. That rule forced banks to notify the FDIC before dealing with digital assets. now, banks can join crypto ventures if thay handle risks well.
This shift comes after 175 FDIC documents were released earlier this year. These showed the past administration pressured banks to cut ties with crypto firms.The documents came out due to a Freedom of Data Act request by Coinbase. Coinbase sued the FDIC in 2024 over unfair practices.
Acting FDIC Chairman Travis Hill said, “This change moves past the flawed past three years. We will take steps to help banks engage in crypto activities safely.”
The old rules often stopped banks from working with crypto firms. The FDIC cited risks and market changes as reasons. Now, the FDIC will work with the President’s Working Group on Digital Asset Markets. They aim to create clearer rules for crypto activities.
