US Regulators Unlock Crypto for Over 5,000 Banks
The Federal Deposit Insurance Corporation (FDIC) issued a pivotal policy update Friday in Washington, allowing financial institutions under its jurisdiction to engage in crypto-related endeavors without needing to obtain prior approval. This adjustment mirrors a similar shift made earlier in the month by the Office of the Comptroller of the Currency, which also oversees parts of the U.S. banking sector.
Through Financial Institution Letter FIL-7-2025, the FDIC clarified that banks under its supervision may engage in permissible crypto and digital asset services as long as they implement appropriate risk controls. The agency explained:
The guidance affirms that FDIC-supervised institutions may engage in permissible activities, including activities involving new and emerging technologies such as crypto-assets and digital assets, provided that they adequately manage the associated risks.
By withdrawing its prior 2022 guidance, the agency marked a departure from more conservative oversight methods and aligned more closely with a forward-facing stance on technological integration. According to its website, "The FDIC directly supervises and examines more than 5,000 banks and savings associations for operational safety and soundness."
"With today's action, the FDIC is turning the page on the flawed approach of the past three years," Acting Chairman Travis Hill opined, adding:
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.
Coordination with the President's Working Group on Digital Asset Markets remains ongoing as the FDIC develops additional instructions and collaborates with peer agencies. These efforts aim to harmonize standards and create a unified regulatory landscape for crypto activities across the banking system.
Earlier this month, the OCC updated its position through Interpretive Letter 1183, establishing a formal pathway for federally chartered banks and savings associations to participate in specific cryptocurrency functions. These include offering custodial services, managing stablecoin operations, and engaging with distributed ledger systems. According to figures published by the OCC, more than 1,000 institutions fell under its supervision in 2024.