FDIC Shifts Crypto Policy Under Trump Administration, Easing Bank Restrictions

The Federal Deposit Insurance Corporation (FDIC) has announced a shift in its stance on digital assets under the Trump administration.

In a statement issued on Friday, the agency revealed it would revoke previous guidance that required financial institutions to notify the FDIC before engaging in cryptocurrency-related activities. This move marks a departure from the past, as the FDIC plans to issue new guidelines clarifying that its regulated entities can participate in certain crypto activities without needing prior approval.

FDIC Acting Chair Travis Hill expressed that this change signals the end of the agency’s previous, flawed approach to digital assets. He noted that this would be one of several steps the FDIC intends to take to establish clearer, more flexible guidelines for banks engaging with crypto and blockchain technologies while ensuring safety and soundness standards are maintained.

In the past, the FDIC had expressed concerns about the potential risks that cryptocurrency activities posed to the U.S. banking system, leading them to require financial institutions to inform the agency of any crypto-related ventures.

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Additionally, the FDIC has taken steps to eliminate the “reputational risk” argument, which some in the crypto industry criticized for restricting access to essential banking services. This action comes on the heels of another move by the Office of the Comptroller of the Currency (OCC), which recently removed prior restrictions on crypto activities within the federal banking system.

These regulatory shifts come after President Trump has expressed a more crypto-friendly stance compared to the Biden administration. At a White House Summit on March 7, Trump criticized the previous administration’s handling of crypto, accusing them of pressuring banks to block crypto businesses and entrepreneurs from accessing essential financial services. Bo Hines, the executive director of the President’s Council of Advisers for Digital Assets, praised the FDIC’s recent actions, calling it “another big win” for the industry.

Deyan Angelov

Активен крипто трейдър, следи и новини, свързани с акции, S&P500 и злато. Деян обича да спортува активно, тренира редовно, занимава се с калистеника. Обича и да чете Sci-Fi книги, когато му остане време.