The Federal Deposit Insurance Corporation will stop requiring banks to obtain prior approval before engaging in cryptocurrency activities—a rule established in 2022 that significantly distanced banks from the digital asset space while they awaited approvals that never materialized.
The FDIC, responsible for overseeing thousands of typically smaller banks and providing a federal safety net for the banking sector, played a crucial role in the ongoing debanking issues in the cryptocurrency realm. A recent legal challenge involving cryptocurrency exchange Coinbase brought to light numerous letters exchanged between the regulator and the banks it supervises. In the 2022 correspondence, the FDIC had directed these banks to refrain from pursuing new crypto ventures until it formulated policies, although the agency ultimately failed to produce any, leaving bankers uncertain.
The new guidance released on Friday follows President Donald Trump’s appointment of leadership at the FDIC and other financial regulatory bodies that are more favorable to cryptocurrencies, signaling a shift in administration policy to support the industry.
“With this action, the FDIC is moving away from the flawed strategies of the past three years,” stated FDIC Acting Chairman Travis Hill. “I anticipate this will be one of several measures the agency will implement to establish a new framework for how banks can safely engage in cryptocurrency and blockchain-related activities.”
Read More: Trump’s FDIC Chief Rethinks Crypto Guidance as U.S. Senators Probe Debanking
Banks that were once required to obtain pre-approvals for cryptocurrency matters are now free to proceed, provided they take appropriate precautions regarding the accompanying risks.
Bo Hines, the director of the White House’s council of digital assets advisers, praised the FDIC’s decision in a social media update, calling it a “significant advance.”
The pre-approval guidance was a common practice among the three main U.S. banking regulatory agencies, including the Federal Reserve and the Office of the Comptroller of the Currency. The OCC also recently moved to revoke its similar guidance from 2022, which was issued during a tumultuous period for the digital assets sector marked by notable failures and fraud, with the global exchange FTX facing critical challenges.
Read More: OCC Says Banks Can Engage in Crypto Custody and Certain Stablecoin Activities
UPDATE (March 28, 2025, 18:42 UTC): Includes comments from a White House official.