FDIC Paves Way for Crypto Involvement
The Federal Deposit Insurance Corporation (FDIC) has issued new guidance that allows FDIC-supervised banks to pursue crypto activities without prior agency approval.
Released in Financial Institution Letter (FIL-7-2025), it is a big change from the 2022 policy that required banks to notify the FDIC before embarking on digital asset activities. The agency now indicates that institutions can proceed provided they manage associated risks responsibly.
A Shift from Restriction to Collaboration
This change is following the release of 175 internal FDIC reports to the public earlier in the year due to Coinbase’s Freedom of Information Act request and lawsuit of the agency in 2024.
The reports indicated a pattern of discouraging banks from engaging in business with crypto customers — a strategy likened to “Operation Choke Point 2.0” by detractors. The FDIC frequently cited market volatility and reputational risk as its rationale.
Rebuilding Bank-Crypto Relationships
“With today’s action, the FDIC is opening a new chapter on the mistaken strategy of the last three years,” said Acting FDIC Chairman Travis Hill. He emphasized this move as the beginning of a broader strategy supporting responsible crypto and blockchain innovation within the banking system.
What’s Next for Crypto-Banking Policy
The FDIC will collaborate with the President’s Working Group on Digital Asset Markets and other regulators to offer direction on how banks can engage safely with digital assets.
This step is an indicator that there is more readiness to include crypto within the regulated banking industry, which means future opportunities for growth for banks as well as crypto businesses.
