The Federal Deposit Insurance Corporation (FDIC) announced on Friday that U.S. banks no longer need to obtain advance permission to engage in certain cryptocurrency-related activities, as long as they manage associated risks appropriately. This decision marks a significant shift in the FDIC’s stance on crypto, overturning previous policy which required banks to clear any crypto involvement in advance.
Acting FDIC Chairman Travis Hill praised the change, stating, “The FDIC is turning the page on the flawed approach of the past three years.” Hill further indicated that there would be more regulatory clarifications in the future to guide banks’ engagement with crypto products and services.
The FDIC’s decision follows a similar move by another U.S. bank regulator, the Office of the Comptroller of the Currency (OCC), which has also been easing restrictions to allow banks more flexibility in participating in the crypto sector.