Crypto activities permitted by FDIC: A new chapter unfolds for banks

The Federal Deposit Insurance Corporation has announced new guidelines permitting FDIC-regulated institutions to partake in allowable crypto-related activities without seeking prior approval from the agency.

This move signifies a change from past policies that were perceived as limiting banks collaborating with crypto businesses.

The guidelines, presented in Financial Institution Letter (FIL-7-2025), revokes a 2022 directive mandating banks to inform the FDIC before engaging in digital asset operations. The FDIC declared that banks may now involve themselves in crypto-related undertakings provided they adequately control associated risks.

Rekindling connections with crypto companies

This policy transformation comes after the disclosure of 175 FDIC documents earlier this year, exposing attempts by the previous administration to coerce banks into severing ties with crypto firms.

These documents were disclosed in response to a Freedom of Information Act request submitted by Coinbase, which filed a lawsuit against the FDIC in 2024 over alleged unfair practices.

"With today's move, the FDIC is starting a new chapter on the flawed strategy of the past three years," expressed Acting FDIC Chairman Travis Hill. "I anticipate this being one of numerous steps the FDIC will take to establish a new approach for how banks can participate in crypto- and blockchain-related activities in line with safety and soundness standards."

The records outline instances of the FDIC advising banks to halt or postpone services to crypto-related enterprises, a practice that critics termed “Operation Choke Point 2.0.”

The agency frequently referred to reputational risks and market volatility as grounds for dissuading financial institutions from partnering with crypto firms.

The FDIC hinted it will persist in working with the President’s Working Group on Digital Asset Markets and cooperate with other banking agencies to formulate more distinct guidance on crypto-related activities.