FDIC rescinds crypto notification requirement for financial institutions
The U.S. Federal Deposit Insurance Corporation (FDIC) has rescinded previous requirements that financial institutions notify the agency before engaging in cryptocurrency-related activities, marking a pivotal shift in federal oversight of digital assets.
The move signals a friendlier stance under the Trump administration and represents a major departure from the more cautious approach adopted during the Biden years, reports The Block.
In a statement released Friday, FDIC Acting Chair Travis Hill announced that the agency’s supervised institutions may now engage in “permissible crypto-related activities” without prior FDIC approval. Hill called the change “a turning point,” adding, “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.”
Rollbacks of past restrictions and reputational risk oversight
The FDIC had previously warned that crypto could pose systemic risks to the banking sector. In April 2022, it issued guidance requiring banks to report their current and planned digital asset activities. That policy has now been formally rescinded. The agency also announced it would stop using “reputational risk” as a basis for supervising banks, a practice that had been criticized by the crypto industry for allegedly excluding firms from essential financial services.
The Office of the Comptroller of the Currency (OCC), which oversees national banks, issued a similar policy reversal earlier this month, clarifying that crypto-related activities are allowed within the federal banking system.
A political and regulatory shift
The FDIC’s new guidance comes in the wake of a broader shift in Washington's posture toward digital assets. President Donald Trump has made pro-crypto policies a priority, criticizing the previous administration for “strong-arming” banks into severing ties with crypto businesses. Bo Hines, executive director of the President’s Council of Advisers for Digital Assets, called the FDIC’s announcement “another big win” for the industry.
Read also: Elon Musk's 'DOGE' team granted access to SEC systems
Latest Crypto News
-
Afghanistan
-
Albania
-
Algeria
-
Angola
-
Argentina
-
Armenia
-
Australia
-
Austria
-
Azerbaijan
-
Bahamas
-
Bahrain
-
Bangladesh
-
Belarus
-
Belgium
-
Bolivia
-
Botswana
-
Brazil
-
Brunei
-
Bulgaria
-
Cambodia
-
Cameroon
-
Canada
-
Chile
-
China
-
Colombia
-
Congo
-
Costa Rica
-
Cote d'Ivoire
-
Croatia
-
Cuba
-
Cyprus
-
Czechia
-
DR Congo
-
Denmark
-
Dominican Republic
-
Ecuador
-
Egypt
-
El Salvador
-
Estonia
-
Eswatini
-
Ethiopia
-
Finland
-
France
-
Georgia
-
Germany
-
Ghana
-
Greece
-
Haiti
-
Hong Kong
-
Hungary
-
India
-
Indonesia
-
Iran, Islamic republic
-
Iraq
-
Ireland
-
Israel
-
Italy
-
Jamaica
-
Japan
-
Jordan
-
Kazakhstan
-
Kenya
-
Korea
-
Kuwait
-
Kyrgyzstan
-
Laos
-
Latvia
-
Lebanon
-
Lesotho
-
Libya
-
Lithuania
-
Luxembourg
-
Madagascar
-
Malaysia
-
Malta
-
Mauritius
-
Mexico
-
Moldova
-
Mongolia
-
Montenegro
-
Morocco
-
Mozambique
-
Myanmar
-
Namibia
-
Nepal
-
Netherlands
-
New Zealand
-
Nigeria
-
North Macedonia
-
Norway
-
Oman
-
Pakistan
-
Palestine
-
Panama
-
Papua New Guinea
-
Paraguay
-
Peru
-
Philippines
-
Poland
-
Portugal
-
Puerto Rico
-
Qatar
-
Reunion
-
Romania
-
Rwanda
-
Saudi Arabia
-
Serbia
-
Singapore
-
Slovakia
-
Slovenia
-
Somalia
-
South Africa
-
Spain
-
Sri Lanka
-
Sweden
-
Switzerland
-
Syria
-
Taiwan
-
Tajikistan
-
Tanzania
-
Thailand
-
Trinidad and Tobago
-
Tunisia
-
Turkey
-
UAE
-
Uganda
-
Ukraine
-
United Kingdom
-
United States
-
Uruguay
-
Uzbekistan
-
Venezuela
-
Vietnam
-
Yemen
-
Zambia
-
Zimbabwe
- Forex
- Crypto
