The Federal Deposit Insurance Corporation (FDIC) has announced that US banks are no longer required to obtain prior approval before engaging in crypto-related activities.
The FDIC states that the institutions it supervises can conduct “permissible activities” involving new and emerging technologies such as cryptocurrencies and digital assets, as long as they “adequately manage” the associated risks. This change marks a departure from the FDIC’s previous policy, which mandated banks to seek clearance for any crypto-related endeavors.
FDIC acting chairman Travis Hill commented, “With today’s action, the FDIC is turning the page on the flawed approach of the past three years. 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.”
This decision is part of a broader trend of relaxing crypto regulations that began during the Trump administration. Earlier this month, the Office of the Comptroller of the Currency announced a similar policy shift, and last week, the CFTC withdrew its advisory regarding virtual currency derivative listings.