FDIC: Banks Permitted to Participate in Crypto-Related Activities Without Advance Notification | JD Supra
On March 28, 2025, the Federal Deposit Insurance Corporation (FDIC) made it clear through a statement that FDIC-supervised institutions are not required to give notice or seek approval from the FDIC before getting involved in crypto-related activities. This new guidance overturns previous guidance issued in 2022, which mandated FDIC-supervised institutions to inform the FDIC before participating in any crypto-related activities.
Latest Guidelines
Financial Institution Letter (FIL-7-2025) states that FDIC-supervised institutions can take part in “permissible activities, including activities involving new and emerging technologies such as crypto-assets and digital assets” without advance notification to the FDIC, as long as these institutions “adequately manage the associated risks” and “conduct all activities in a safe and sound manner and in compliance with all applicable laws and regulations.” The FDIC highlights risks such as market and liquidity risks, operational and cybersecurity risks, consumer protection requirements, and anti-money laundering requirements.
“Crypto-related activities” encompass various activities including “acting as crypto-asset custodians; maintaining stablecoin reserves; issuing crypto and other digital assets; acting as market makers or exchange or redemption agents; participating in blockchain- and distributed ledger-based settlement or payment systems, including performing node functions; as well as related activities such as finder activities and lending.”
Shift from Previous Guidelines
This recent guidance revokes the 2022 guidance that obligated FDIC-supervised institutions to inform the FDIC before engaging in any crypto-related activities. The earlier guidance required that, after notification, the FDIC would request “information necessary to allow the agency to assess the safety and soundness, consumer protection, and financial stability implications of such activities.” The FDIC had introduced this procedure in response to what it identified as “significant safety and soundness risks, as well as financial stability and consumer protection concerns” posed by crypto-related activities.
The modification in policy by the FDIC mirrors a similar move by the Office of the Comptroller of the Currency (OCC). On March 7, 2025, through Interpretive Letter 1183, the OCC rescinded November 2021 guidance that mandated any national bank or federal savings association intending to engage in crypto-related activities to notify the OCC before doing so and to “demonstrate, to the satisfaction of its supervisory office, that it has controls in place to conduct the activity in a safe and sound manner.”
Future Outlook
These recent policy revisions by both the FDIC and the OCC align with the Trump administration’s efforts to revamp crypto regulation. On January 23, 2025, the president signed an executive order that, among other initiatives, established the Presidential Working Group on Digital Asset Markets to offer suggestions regarding federal cryptocurrency regulation.
The FDIC mentioned that, alongside continued collaboration with the presidential working group, it anticipates releasing further crypto-related guidance and will collaborate with other banking regulators to replace interagency statements issued in January 2023 and February 2023.
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