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The Federal Deposit Insurance Corporation (FDIC) has announced a significant shift in its regulatory approach, allowing FDIC-supervised institutions to engage in cryptocurrency-related activities without requiring prior approval, provided they implement robust risk management practices.
This change, outlined in a Financial Institution Letter (FIL-7-2025) issued on March 28, rescinds a previous directive (FIL-16-2022) that had mandated prior notification for banks exploring crypto activities. The move is part of a broader regulatory shift aimed at fostering innovation while ensuring financial stability.
“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. “I expect this to be one of several steps the FDIC will take to lay out a new approach for how banks can engage in crypto- and blockchain-related activities in accordance with safety and soundness standards.”
The FDIC also signaled plans to issue additional guidance clarifying how banks can participate in specific crypto-related activities while maintaining compliance with regulatory standards. The agency is set to collaborate with other banking regulators to develop a comprehensive framework that replaces existing interagency policies on crypto assets.
This regulatory update follows similar action by the Office of the Comptroller of the Currency (OCC). On March 7, the OCC published Interpretive Letter 1183, reaffirming that national banks and federal savings associations can engage in crypto-asset custody, stablecoin activities, and participate in independent node verification networks (such as blockchain infrastructure) under appropriate risk management conditions.
“The OCC expects banks to have the same strong risk management controls in place to support novel bank activities as they do for traditional ones,” said Acting Comptroller of the Currency Rodney E. Hood. “Today’s action will reduce the burden on banks to engage in1 crypto-related activities and ensure that these bank activities are treated consistently by the OCC, regardless of the underlying technology.”
This evolving regulatory landscape comes amid increasing advocacy for clearer guidelines on bank-crypto partnerships. In February, it was reported that Coinbase, the largest U.S. crypto exchange, was actively lobbying regulators to make bank-cryptocurrency collaborations more feasible. The push aligns with broader industry expectations following the arrival of a new pro-crypto administration in Washington.
The FDIC’s latest move underscores a growing recognition of cryptocurrency and blockchain’s role in the financial sector, as regulators work to balance innovation with risk management and regulatory compliance.
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