Turning The Page: FDIC Says Banks Can Engage In Crypto-related Activities

The Federal Deposit Insurance Corporation has issued new guidance allowing FDIC-supervised institutions to engage in permissible crypto-related activities without prior agency approval. 

This marks a reversal from previous policies that were seen as restrictive toward banks working with crypto firms.

The guidance, released in Financial Institution Letter (FIL-7-2025), rescinds a 2022 directive that required banks to notify the FDIC before engaging in digital asset activities. The FDIC stated that banks may now participate in crypto-related ventures as long as they effectively manage associated risks.

The policy shift follows the release of 175 FDIC documents earlier this year, revealing efforts by the previous administration to pressure banks into cutting ties with crypto firms. 

These documents were made public in response to a Freedom of Information Act request filed by Coinbase, which sued the FDIC in 2024 over alleged unfair practices.

“With today’s action, the FDIC is turning the page on the flawed approach of the past three years,” said Acting FDIC 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 records detail instances of the FDIC instructing banks to pause or suspend services to crypto-related businesses, a practice that critics dubbed “Operation Choke Point 2.0.” 

The agency frequently cited reputational risks and market volatility as reasons for discouraging financial institutions from working with crypto firms.

The FDIC indicated it will continue working with the President’s Working Group on Digital Asset Markets and collaborate with other banking agencies to develop clearer guidance on crypto-related activities.