The Federal Deposit Insurance Corporation has released updated guidance enabling FDIC-supervised institutions to take part in approved crypto-related activities without needing prior approval from the agency.
The Federal Deposit Insurance Corporation (FDIC) has introduced revised guidance that authorizes institutions under its supervision to engage in certain approved crypto-related activities without the need to seek prior consent from the agency.
This policy shift signals a departure from the FDIC’s earlier, more cautious approach, which had been viewed as limiting banks’ ability to partner with or serve firms operating in the digital asset space.
The updated guidance, formalized in Financial Institution Letter (FIL-7-2025), officially withdraws a directive issued in 2022 that required FDIC-regulated banks to provide advance notice before initiating any activities involving digital assets. According to the FDIC, banks are now permitted to participate in crypto-related operations, provided they demonstrate robust risk management practices and maintain appropriate safeguards to address the unique challenges associated with digital assets.
Reinitiating banking relationships and service provisions to cryptocurrency-related businesses
This change in policy comes in the wake of the release of 175 FDIC documents earlier this year, which shed light on attempts by the prior administration to exert pressure on banks to sever their relationships with cryptocurrency companies.
The policy shift comes on the heels of the public release of 175 FDIC documents earlier this year, which exposed efforts by the previous administration to pressure financial institutions into distancing themselves from cryptocurrency firms.
These documents were disclosed following a Freedom of Information Act (FOIA) request submitted by Coinbase, which filed a lawsuit against the FDIC in 2024, alleging discriminatory and unfair regulatory 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 define a new framework that allows banks to engage in crypto and blockchain-related activities while upholding safety and soundness standards.”
The released records describe multiple instances in which the FDIC directed banks to halt or reconsider their services to crypto-focused businesses—a pattern critics have referred to as “Operation Choke Point 2.0.”
The agency often cited concerns about reputational damage and market instability as justifications for discouraging such banking relationships.
Looking ahead, the FDIC stated it intends to work closely with the President’s Working Group on Financial Markets and collaborate with other federal banking regulators to develop clearer, more consistent guidelines for banks involved in crypto-related activities.