FDIC Ends US Cryptocurrency Banking Policy That Required Pre-Approval
A U.S. banking institution has reversed a policy that has fueled accusations that the crypto industry is pressuring financial institutions to “debank” customers using digital assets.
Jesse Hamilton | Edited by Nikhilesh De Updated Mar 28, 2025 20:38 UTC Published Mar 28, 2025 18:33 UTC
What you need to know:
- The Federal Deposit Insurance Corporation has unveiled a new cryptocurrency policy that reverses previous guidelines that required banks to obtain approval from the regulator before engaging in any new cryptocurrency activities.
- The new position follows a similar move by another U.S. banking agency, the Office of the Comptroller of the Currency.
- Regulators appointed by President Donald Trump have quickly overcome the U.S. government's years-long hesitation on cryptocurrencies.
The Federal Deposit Insurance Corporation will no longer require banks to obtain pre-approval before dealing in cryptocurrencies, a standard introduced in 2022 that effectively isolated institutions from the digital asset sector as they were forced to wait for approvals that never came.
The FDIC, which is the primary federal regulator for thousands of typically small banks and manages government support for the banking industry, has played a major role in crypto-debanking issues. A recent lawsuit involving crypto exchange Coinbase revealed multiple emails between the regulator and the banks it oversees. In those 2022 correspondence, the FDIC advised them to avoid new crypto issues while it developed its policy, though the agency has yet to formulate one, leaving bankers in limbo.
New guidance for the industry, released Friday, comes after President Donald Trump stepped up support for cryptocurrencies at the FDIC and other financial regulators, instructing his administration to open the door to the industry.
“The FDIC’s action today marks an end to the misguided policies of the past three years,” Acting FDIC Chairman Travis Hill said in a statement. “I expect this to be just one of several steps the FDIC will take to shape a new approach to how banks can engage in cryptocurrency and blockchain-related activities while maintaining safety and soundness standards.”
Read More: Trump FDIC Chief Revises Crypto Guidelines As U.S. Senators Probe Debanking
Now banks that previously had to get pre-approval to deal with cryptocurrencies can proceed as long as they properly assess the risks.
Bo Hines, director of the White House Council of Digital Asset Advisors, praised the FDIC's decision in a social media post, calling it a “significant step forward.”
The guidance on seeking pre-approvals has been a common position across all three U.S. banking agencies, including the Federal Reserve and the Office of the Comptroller of the Currency. The OCC also recently moved to roll back its similar 2022 guidance, which was put in place during the digital asset crisis, when global exchange FTX was heading toward disaster.
Read More: OCC Says Banks May Engage in Cryptocurrency Custody, Certain Stablecoin-Related Activities
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