FDIC Makes Way for Banks to Enter Crypto Space
The Federal Deposit Insurance Corporation (FDIC) has issued new guidelines that permit banks to engage in crypto-related transactions without prior approval. The move is a significant policy shift that suggests a more open posture toward digital assets.
In Financial Institution Letter (FIL-7-2025), the FDIC withdrew a 2022 regulation that required supervised banks to notify the agency before engaging in digital asset ventures. The new policy permits banks to venture into crypto space if they are able to manage risks associated with them.
Reversing Restrictive Policies
The shift comes after some criticism of the FDIC’s earlier stance as, in some circles, it was viewed as knocking back the spark of innovation and stifling financial institutions’ engagement with the crypto space.
Acting FDIC Chairman Travis Hill said the agency is “turning the page on the flawed approach of the past three years,” noting the goal to develop a balanced framework for blockchain and digital asset inclusion.
Fallout from Operation Choke Point 2.0
The disclosure follows the public release of 175 FDIC documents showing prior management’s attempts to pressure banks into severing ties with crypto companies. The releases followed Coinbase’s lawsuit against the FDIC in 2024, alleging it participated in unfair competition under what has been dubbed “Operation Choke Point 2.0.”
Documents revealed that the FDIC frequently used reputational risks and market instability as a rationale for discouraging collaborations with crypto firms.
Toward Coordinated Crypto Oversight
The FDIC indicated it will continue to collaborate with the President’s Working Group on Digital Asset Markets and other federal banking regulators. The goal: to provide clearer, safer guidance as the banking sector increasingly converges with crypto and blockchain technologies.
