The Federal Deposit Insurance Corporation (FDIC) has issued new guidance (FIL-7-2025) for banks under its supervision that are involved or planning to be involved in crypto-related activities.
This guidance, which replaces FIL-16-2022, confirms that FDIC-supervised banks can participate in permitted crypto activities without needing prior approval from the FDIC.
Banks may engage in crypto and digital asset activities, including those involving emerging technologies, as long as they manage the associated risks effectively.
FDIC Acting Chairman Travis Hill stated that the FDIC is moving away from previous approaches and plans to develop new standards for how banks can engage in crypto and blockchain activities while maintaining safety and soundness.
With today’s action, the FDIC is turning the page on the flawed approach of the past three years.
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.
FDIC Acting Chairman Travis Hill
The FDIC will continue working with the President’s Working Group on Digital Asset Markets to release more guidance in the future.
It also plans to collaborate with other banking agencies to update or replace existing interagency documents related to crypto assets with new regulations or guidelines (wee TOP 50 Banks by Assets and Deposits in the U.S.).
On April 7, 2022, the FDIC issued a Financial Institution Letter (FIL-16-2022) titled Notification of Engaging in Crypto-Related Activities, which established a prior notification requirement for FDIC-supervised institutions that wish to engage in crypto-related activities.
The FDIC is rescinding FIL-16-2022 and providing new guidance to clarify that FDIC-supervised institutions may engage in permissible crypto-related activities without receiving prior FDIC approval.
This FIL 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.
The FDIC expects that FDIC-supervised institutions conduct all activities in a safe and sound manner and consistent with all applicable laws and regulations.
In contrast to FIL-16-2022, which established a prior notification requirement specific to crypto-related activities, this FIL clarifies that FDIC-supervised institutions may engage in permissible crypto-related activities without receiving prior FDIC approval.
As with all other activities, FDIC-supervised institutions should consider the associated risks—including, but not limited to, market and liquidity risk; operational and cybersecurity risks; consumer protection requirements; and anti-money laundering requirements—and should engage with their supervisory team as appropriate.
The FDIC will continue to engage with the President’s Working Group on Digital Asset Markets and expects to issue further guidance in the future to provide additional clarity regarding banks’ engagement in particular crypto-related activities.
The FDIC will also work with the other banking agencies to replace interagency documents issued in January 2023 and February 2023 related to crypto-assets with further guidance or regulations.
