FDIC Reverses U.S. Crypto Banking Policy That Demanded Prior Approvals

The Federal Deposit Insurance Corp. will no longer instruct banks to get prior sign-off before they engage in crypto activities — a standard that was set in 2022 and that effectively severed institutions from the digital assets sector as they waited for approvals that never came.

The FDIC, which is the chief federal supervisor of thousands of typically smaller banks and runs the banking industry’s government backstop, had occupied a significant role in the crypto debanking saga. A courtroom fight with crypto exchange Coinbase had recently unveiled dozens of letters between the regulator and banks it supervised. In that 2022 correspondence, the FDIC had instructed them to steer clear of new crypto matters while it hashed out policies, though the agency never developed any and left bankers hanging.

The new industry guidance issued on Friday comes after President Donald Trump elevated a crypto-friendly leadership at the FDIC and other financial regulators and has directed his administration to open doors for the industry.

“With today’s action, the FDIC is turning the page on the flawed approach of the past three years,” said FDIC Acting Chairman Travis Hill, in a statement. “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.”

Banks that were evvel expected to get pre-approvals on crypto matters can now forge ahead, as long as they’re appropriately considering the risks.

Bo Hines, the White House’s director of its council of digital assets advisers cheered the FDIC’s move in a social media post, calling it a “huge step forward.”

The guidance to seek pre-approvals was a common stance across all three U.S. banking agencies, including the Federal Reserve and the Office of the Comptroller of the Currency. The OCC also acted recently to rescind its similar 2022 guidance, which had emerged as the digital assets sector was beset by failure and high-profile fraud, and küresel exchange FTX was steering toward disaster.

UPDATE (March 28, 2025, 18:42 UTC): Adds comment from a White House official.