The Federal Deposit Insurance Corporation (FDIC) has fueled crypto’s mainstream push across the US by allowing supervised banks to engage in crypto activities without prior approval.
On Friday, the FDIC issued a new policy (FIL-7-2025) that replaces its previous guidance (FIL-16-2022), revising how it oversees banks engaging in crypto activities. This update means that banks can engage in permissible crypto-related activities without receiving prior approval from the agency.
Travis Hill, Acting Chairman of FDIC, said: “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.”
Previously, banks were mandated to seek FDIC approval before engaging in crypto-related activities. However, under the new guidance, banks can now proceed with these activities as long as they comply with safety and risk management requirements.
Continuing its collaboration with President Donald Trump’s Working Group on Digital Asset Markets, the FDIC plans to release further guidance to clarify banks’ involvement in specific crypto-related activities. Additionally, it will work with other banking agencies to update or replace existing interagency documents on crypto-assets with new regulations or guidance.
In recent months, US banks have expressed interest in utilising crypto, with the Bank of America stating that it was waiting for updated regulations before it entered the space.
Several factors are contributing to the mainstream shift of crypto in the US. One key factor is the growing adoption of stablecoins. These digital currencies, which are pegged to fiat currencies like the USD, have caught the attention of banks by combining the speed of blockchain with stable value. Stablecoins have become particularly popular for cross-border transactions.
Another significant influence is Trump’s advocacy of making the US a global leader in crypto. As highlighted by Hill, Trump formed a working group focused on crypto, exploring uses like a US federal crypto reserve.
Under the previous administration, many crypto firms felt that regulations were not transparent, leading to hefty fines. However, since Trump took office, many investigations into these firms have been dropped, and new regulations have been introduced to support sector growth, aiming to bridge the gap between traditional financial institutions and digital currencies.
