FDIC Approves Bank Crypto Activities

FDIC Allows Banks to Engage in Crypto Without Prior Approval

• The FDIC announced banks can engage in crypto activities without prior regulatory approval.
• This reverses a 2022 requirement for FDIC-supervised institutions to notify the agency before engaging in crypto-related activities.
• FDIC Acting Chairman Travis Hill called the move a departure from the past three years’ approach.
• The policy aligns with recent actions by the Office of the Comptroller of the Currency.
• Banks must still manage risks like market, liquidity, and cybersecurity concerns.

The FDIC’s new guidance allows banks to offer crypto services without advance permission, aligning with similar regulatory shifts. Banks are required to manage associated risks effectively.