FDIC Updates Crypto Guidance, Removes Pre-Approval Requirement For Banks

On March 28, the FDIC issued updated guidance clarifying the process for FDIC-supervised institutions to engage in crypto-related activities. The guidance rescinds and replaces prior instructions issued in 2022 and makes clear that banks no longer need to seek prior FDIC approval before participating in permissible crypto activities.

Under the revised policy, institutions may pursue crypto activities that are legally permissible and conducted in a safe and sound manner. The guidance also emphasizes the need for robust risk management and compliance with applicable laws and regulations. Covered crypto activities include, but are not limited to:

• Acting as custodians of crypto assets;