The FDIC has announced a new guidance allowing banks to engage in crypto-related activities without prior approval, reflecting a shift from previous regulations. This change aims to provide clarity while ensuring safety standards, and further guidance is expected. The OCC also reaffirmed certain permissions for banks regarding crypto custody and activities, indicating a broader acceptance of crypto in banking.
The Federal Deposit Insurance Corporation (FDIC) recently issued guidance enabling FDIC-supervised banks to engage in crypto-related activities without requiring prior approval. This marks a significant shift from the previous requirements outlined in Financial Institution Letter (FIL-16-2022).
Acting Chairman Travis Hill highlighted this change as a new approach, indicating a move away from the prior guidance, which he described as flawed. The FDIC aims to enhance clarity on crypto engagement while maintaining safety and soundness standards.
Further guidance is anticipated, focusing on specific crypto activities for banks, and the FDIC will collaborate with other banking agencies to create comprehensive regulations replacing existing interagency documents related to crypto assets.
This update follows the Office of the Comptroller of the Currency’s (OCC) reclarification of banking permissions regarding crypto. OCC’s Interpretive Letter 1183 confirmed that activities such as crypto-asset custody and participation in distributed ledger networks are permissible for national banks.
OCC Acting Comptroller Rodney E. Hood emphasised that strong risk management controls for novel banking activities must be comparable to those for traditional banking. This initiative aims to alleviate burdens on banks wishing to engage in crypto activities consistently across different technologies.
Recent reports indicated that Coinbase has been lobbying for regulatory changes to ease bank-cryptocurrency partnerships, reflecting the evolving digital asset landscape in light of a new pro-crypto administration in Washington.
