- The FDIC has issued a new crypto policy, rescinding a prior directive that limited banks’ participation in crypto-related activities.
- The U.S. banking agency released new guidance in a press release on March 20, 2025.
The Federal Deposit Insurance Corporation (FDIC) announced on Friday, March 28, 2025, that it is rescinding previous guidance that required banks to notify the agency before engaging in crypto-related activities. This marks a policy shift under the Trump administration intended to streamline how financial institutions interact with digital assets and blockchain technology.
FDIC rescinds prior crypto guidance
The banking regulator’s change means that banks and other FDIC-supervised institutions are no longer required to report their current or planned crypto-related activities to the agency in advance. Previously, the FDIC had warned of potential risks to the stability of the U.S. banking system and included such reporting expectations in its Financial Institution Letter FIL-16-2022, issued in April 2022. The new guidance removes that requirement and clarifies that FDIC-supervised institutions may engage in permissible crypto-related activities without prior FDIC approval.
In its statement, the FDIC said it is rescinding FIL-16-2022 and issuing updated guidance to clarify that institutions supervised by the FDIC may undertake permissible crypto-related activities without seeking prior FDIC approval. The change reflects a broader effort to adapt the regulatory framework to the evolving digital asset landscape while maintaining oversight to protect financial stability.
The agency emphasized that, although banks can now pursue these activities more freely, they must continue to comply with existing safety and soundness principles. The FDIC aims to balance support for innovation with protections that preserve the integrity of the banking system. “With today’s actions the FDIC turns the page on a flawed approach of the past three years,” said Acting FDIC Chairman Travis Hill. “I expect this will be one of several steps the FDIC will take to develop a new approach for how banks can engage in crypto- and blockchain-related activities consistent with safety and soundness standards.”
This announcement is one of several recent developments in the crypto space and follows other notable events involving the sector’s key participants. The FDIC’s decision signals an easing of pre-approval constraints and may encourage more banks to explore services and products tied to digital assets, provided they do so within the existing regulatory and risk-management frameworks. Observers say the updated guidance may accelerate pilot programs, custody offerings, and other crypto services at insured institutions, while regulators continue to monitor risks related to consumer protection, anti-money laundering, operational resilience, and systemic stability.
Banks that choose to expand into crypto-related services should ensure comprehensive risk assessments, robust governance, and strong compliance programs. Key considerations include due diligence on counterparties, secure custody arrangements, clear accounting and capital treatment, protections for depositors, and adherence to applicable laws and supervisory expectations. The FDIC’s updated guidance reinforces that regulatory relief does not eliminate these responsibilities: institutions must still demonstrate that they can conduct new activities safely and maintain the soundness of their operations.
As the regulatory environment evolves, market participants and policymakers will be watching how banks implement crypto-related offerings and how supervisors respond to emerging risks. The FDIC’s move to rescind the prior directive is likely to prompt both cautious experimentation and closer engagement between regulators and the banking industry to ensure that innovation proceeds without compromising financial stability.