FDIC says banks don’t need prior approval for crypto activities

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The watchdog says firms that it supervises can carry out “permissible activities” involving new and emerging technologies such as crypto and digital assets, provided that they “adequately manage” the associated risks.

The stance reverses the FDIC’s previous policy of requiring banks to clear crypto-related activities before carrying them out.

“With today’s action, the FDIC is turning the page on the flawed approach of the past three years,” says FDIC acting chairman Travis Hill. “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.”

The decision is part of a wider relaxation of crypto rules under the Trump administration. Earlier this month, the Office of the Comptroller of the Currency made a similar announcement and last week, the CFTC withdrew its advisory on virtual currency derivative listings.