FDIC permits banks to engage in crypto without prior approval
Documents released following a Coinbase lawsuit show the FDIC previously pressured banks to sever ties with crypto firms.
The Federal Deposit Insurance Corporation (FDIC) has introduced new guidance, allowing FDIC-supervised institutions to engage in crypto-related activities without prior approval. It reverses the restrictions that previously limited banks’ involvement with crypto firms.
The updated guidance, outlined in Financial Institution Letter (FIL-7-2025), rescinds a 2022 directive. The previous directive required banks to notify the FDIC before engaging in digital asset activities.
The policy change follows the release of FDIC documents. These documents revealed efforts by the FDIC to pressure banks into severing ties with crypto businesses.
Acting FDIC Chairman Travis Hill welcomed the shift, stating it represents a break from past practices. He added that this new approach would allow banks to engage with crypto and blockchain activities. However, they must manage associated risks effectively.
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