US Banks Gain Crypto Access as FDIC Revokes Approval Rule

The Federal Deposit Insurance Corporation (FDIC) has officially scrapped its 2022 rule that required banks to get approval before engaging in crypto activities. For years, banks interested in digital assets were stuck in limbo, waiting for approvals that never came. Now, that roadblock is gone.

With fewer regulatory hurdles, will banks finally embrace digital assets, or will caution still hold them back? Here’s what the new guidance means and why it matters.

FDIC Gives Banks the Go-Ahead for Crypto

In its updated guidance, the FDIC stated that banks under its supervision can engage in crypto-related activities as long as they properly manage the risks involved.

“FDIC-supervised institutions may engage in permissible activities, including activities involving new and emerging technologies such as crypto-assets and digital assets, provided that they adequately manage the associated risks.”

Like any financial activity, banks must assess potential risks, follow consumer protection and anti-money laundering rules, and consult with regulators when needed.

FDIC’s Role in the Crypto Banking Crackdown

The FDIC oversees many smaller banks and plays a key role in protecting the financial system. However, it was also involved in what many call a crypto banking crackdown. A lawsuit involving Coinbase revealed that the FDIC had quietly warned banks to avoid working with crypto companies while drafting new rules—but never actually put those rules in place.

A Shift Under Trump’s Administration

This policy change comes after President Trump appointed leaders who support the crypto industry and encouraged regulators to take a more open approach. FDIC Acting Chairman Travis Hill said this move corrects the agency’s flawed approach over 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,” he noted.

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Regulators Easing Restrictions on Crypto

Bo Hines, head of the White House’s Digital Assets Advisory Council, called the decision a “huge step forward” in a social media post. Previously, the FDIC, Federal Reserve, and Office of the Comptroller of the Currency (OCC) all required banks to get pre-approval before working with crypto.

The OCC recently reversed its 2022 guidance, which was introduced during a time of instability in the digital asset industry. That period saw major company failures and high-profile fraud cases, including the collapse of crypto exchange FTX. These recent regulatory changes signal a shift in how US regulators view the crypto industry, possibly paving the way for more mainstream adoption.