The Federal Deposit Insurance Corporation (FDIC) has abruptly reversed course on its crypto policies, rescinding the controversial FIL-16-2022 guidance on March 28, 2025. Banks can now plunge into crypto activities without begging for permission first. About time.
This policy shift marks a dramatic departure from the agency’s approach over the past three years. Supervised institutions are free to engage in permissible crypto activities, provided they manage the risks appropriately. The change aligns with recent moves by the Office of the Comptroller of the Currency, which reiterated its stance on crypto-asset custody services.
The FDIC’s stunning policy reversal unleashes banks from crypto shackles, aligning with OCC’s pro-innovation stance while demanding prudent risk management.
The reversal is part of broader Trump administration efforts to ease digital asset regulations. The Federal Reserve is expected to review its guidance soon, creating what officials hope will be a streamlined regulatory framework. It follows President Trump’s executive order aimed at strengthening America’s position in the digital asset space.
For banks, this means new opportunities. Stablecoin payments, blockchain transactions, crypto storage – all on the table now. No more fear of denial or endless delays. This regulatory clarity will enhance innovation in digital finance for consumers seeking access to cutting-edge financial products. Acting Comptroller Rodney E. Hood emphasized that risk management controls for crypto activities should mirror those used for traditional banking services.
Industry analysts predict a significant capital influx into the cryptocurrency sector as traditional banks reassess their support for digital asset firms. This could lead to substantial growth in blockchain technology adoption across the financial sector.
“A significant advancement,” declared the White House director of council on digital assets. The American Bankers Association praised the move, while Coinbase – still embroiled in legal disputes revealing previous FDIC communications – claimed vindication.
Acting FDIC Chairman Travis Hill expects further steps, emphasizing safety and soundness standards remain paramount. The agency plans to work with others on extensive crypto-asset guidance.
Risk management remains front and center. Market volatility, liquidity issues, operational threats – banks still need to handle these. Cybersecurity and anti-money laundering concerns haven’t magically disappeared.
The previous policy, established in 2022 following the Terra stablecoin crash and FTX collapse, effectively blocked banks from crypto activities. A joint warning from federal regulators in January 2023 further cemented the barriers.
Now those walls are crumbling. Let the crypto rush begin.
