TLDR
- FDIC rescinded a policy that required banks to notify the agency before engaging in crypto-related activities
- CFTC announced digital asset derivatives will not be treated differently than other derivatives
- The regulatory changes follow the elimination of the “reputational risk” category from bank exams
- Acting FDIC Chairman Travis Hill stated they are “turning the page on the flawed approach of the past three years”
- The changes align with President Trump’s stated goal to make the US “the crypto capital of the planet”
The Federal Deposit Insurance Corporation (FDIC) announced on March 28, 2025, that banks and other financial institutions under its supervision can now engage in crypto-related activities without seeking prior approval.
This change rescinds a previous requirement established during the Biden administration that mandated institutions to notify the agency before participating in the crypto sector.
The announcement came on the same day that the Commodity Futures Trading Commission (CFTC) revealed that digital asset derivatives would no longer be treated differently than other derivatives. The CFTC’s revision is effective immediately, clearing up what had been a regulatory gray area.
Acting FDIC Chairman Travis Hill explained the agency’s new direction in a statement.
“With today’s action, the FDIC is turning the page on the flawed approach of the past three years,” Hill said. “I expect this to be one of several steps the FDIC will take to lay out a new approach.”
The FDIC’s updated guidance applies to a wide range of crypto-related activities. These include acting as crypto-asset custodians, maintaining stablecoin reserves, issuing digital assets, and participating in blockchain-based payment systems.
While banks no longer need prior approval, the FDIC emphasized that institutions should still consider associated risks. These include market and liquidity risks, operational and cybersecurity concerns, consumer protection requirements, and anti-money laundering regulations.
The regulatory shift follows the FDIC’s March 25 decision to eliminate the “reputational risk” category from bank examinations. This removal opened a path for banks to work with digital assets without fear of being penalized during examinations.
Trump Admin
The change in tone from these regulatory agencies reflects the new environment for crypto firms under President Donald Trump’s administration. Trump has publicly stated his intention to make the United States “the crypto capital of the planet.”
Crypto companies are already adjusting their strategies to align with the easing regulatory climate. Coinbase recently announced the offer of 24/7 Bitcoin and Ether futures trading.
Reports indicate that Coinbase is also planning to acquire Derebit, a crypto derivatives exchange. This move would expand the company’s presence in the derivatives market as regulations become more favorable.
Another major US-based cryptocurrency exchange, Kraken, has also made moves in the derivatives space. On March 20, Kraken announced the acquisition of NinjaTrader, which would allow the exchange to offer crypto futures and derivatives products to US customers.
The Office of the Comptroller of the Currency (OCC), another US bank regulator, has made similar moves to clear the way for banks to enter the crypto sector. These coordinated regulatory changes suggest a broader shift in the US government’s approach to digital assets.
The FDIC’s new guidance eliminates the requirement for banks to report their current and planned crypto-related activities. Previously, this reporting was required due to concerns about risks to the stability of the US banking system.
The agency emphasized that while banks can now explore these activities independently, they must still adhere to existing safety and soundness principles. This approach aims to foster innovation without compromising the integrity of the banking system.
The announcement comes alongside other positive developments for the crypto industry, including President Trump’s pardoning of three co-founders of BitMEX crypto exchange.
