Federal deposit insurers will no longer instruct banks, the standard set in 2022, a standard that has been waiting for an effective deferred approval from the digital asset sector, to obtain advance sign-offs.
The FDIC was the leading federal supervisor of typically thousands of small banks, running the government backstop in the banking industry, and was a key role in the saga of decanking the crypto. The court battle with Crypto Exchange Coinbase recently released dozens of letters between regulators and the banks it overseen. In that 2022 newsletter, the FDIC instructed them to avoid the issue of new cryptography while hashing the policy, but the institutions developed nothing and left bankers were hanging.
The new industry guidance issued Friday comes after President Donald Trump directed the promotion of crypto-friendly leadership in the FDIC and other financial regulators, opening the door to the industry.
“With today’s actions, the FDIC will turn the page of its flawed approach over the past three years,” FDIC representative Travis Hill said in a statement. “I think this will be one of several steps we will take to lay out new approaches about how FDIC can engage in cryptographic and blockchain-related activities according to safety and health standards.”
Read more: Trump’s FDIC Chief reconsiders crypto guidance as an investigation obstruction for US Senators
Banks once expected to get pre-approval on crypto issues can now move forward as long as they properly consider the risks.
Bo Hines, director of the White House Digital Asset Advisors Council, has supported the FDIC move in a social media post, calling it a “big step forward.”
Guidance for searching for pre-approval was a common stance across all three US banking institutions, including the Federal Reserve and the Secretary of Money. The OCC has recently acted to withdraw a similar 2022 guidance that has emerged as the digital asset sector is plagued by failure and famous scams, with the global exchange FTX being piloted towards disaster.
Read more: OCC says banks can engage in crypto custody and specific Stablecoin activities
Update (March 28, 2025, 18:42 UTC): Add a comment from White House officials.