- The FDIC allows banks to engage in crypto activities without prior approval.
- The decision rescinds a prior notification requirement, promoting smoother integration of digital assets.
- Industry leaders, including Cardano’s Charles Hoskinson, applaud the move as a significant win for crypto.
The Federal Deposit Insurance Corporation (FDIC) clarified its stance on crypto-related banking activities Friday, drawing praise from industry leaders like Cardano founder Charles Hoskinson.
The US banking regulator announced it rescinded FIL-16-2022. This 2022 policy had required FDIC-supervised institutions to first notify the agency before engaging in digital asset services. The FDIC’s new guidance effectively allows these banks to now offer approved crypto-related services without seeking prior agency permission, a change seen as potentially encouraging more institutional participation in the space.
Related: Ripple CTO Slams FDIC’s Crypto Roadblocks Amid Coinbase Court Revelations
What Rules Must Banks Still Follow for Crypto Services?
On March 28, the FDIC announced the rescission of FIL-16-2022, a policy issued in April 2022 that required banks under its supervision to notify the agency before engaging in crypto activities. The new guidance confirms that banks may participate in such activities as long as they effectively manage the associated risks.
While the prior notification requirement has been removed, banks are still expected to conduct crypto-related operations in a safe and sound manner. They must adhere to regulations concerning market risk, liquidity, cybersecurity, and anti-money laundering compliance.
The FDIC emphasized that financial institutions should work closely with their supervisory teams when navigating digital asset services.
Related: Senate Votes to Repeal IRS DeFi Crypto Broker Rule in Bipartisan Victory for Industry
Industry Leaders React
Notably, the FDIC’s updated approach could reduce friction for banks looking to integrate crypto services and accelerate adoption within the traditional banking sector. Cardano founder Charles Hoskinson echoed this sentiment in his remarks.
“This is a major step forward and a big win for crypto,” he said.
“Wow! Banks can now touch crypto without groveling for approval? How generous,” said Teddy Paulus, a Bitcoin advocate.
Notably, the FDIC’s decision also aligns with broader regulatory easing for crypto businesses. The agency plans to issue further guidance in collaboration with other U.S. financial regulators.
Broader Regulatory Easing for Crypto Businesses
In January, the SEC repealed the controversial crypto accounting rule, Staff Accounting Bulletin 121 (SAB 121), replacing it with SAB 122.
SAB 121 required financial institutions holding crypto assets for customers to list them as liabilities on their balance sheets, which was criticized for complicating crypto custody and hindering innovation.
Related: SEC Loosens SAB 121 Rules, Paving the Way for Banks to Enter Crypto Custody Market
Meanwhile, earlier this week, U.S. Senators voted 70-28 to repeal a controversial IRS rule that imposed heavy tax reporting requirements on decentralized finance (DeFi) protocols.
The rule would have required DeFi projects to report user transactions like traditional brokers, raising concerns about privacy and feasibility. The resolution now moves to President Trump for approval.
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