Over 5,000 US banks can now enter crypto markets as regulators lift licensing requirements, signaling a significant step toward digital asset integration and streamlined oversight.
US Regulators Open Crypto to Over 5,000 Banks
The Federal Deposit Insurance Corporation (FDIC) announced a landmark policy update in Washington on Friday that allows financial institutions under its supervision to engage in crypto-related activities without prior approval. This adjustment mirrors a similar change made earlier this month by the Office of the Comptroller of the Currency, which also oversees parts of the US banking sector.
Through Financial Institution Letter FIL-7-2025, the FDIC clarified that banks under its supervision may engage in permissible crypto and digital asset services as long as they implement appropriate risk controls. The agency stated:
The policy confirms that FDIC-supervised institutions may engage in permissible activities, including activities involving new and emerging technologies such as crypto assets and digital assets, provided they appropriately manage the associated risks.
By withdrawing the previous 2022 guidance, the agency marked a departure from more conservative supervisory methods and shifted its focus to a more forward-looking approach to technological integration. According to its website, “The FDIC directly supervises and inspects more than 5,000 banks and savings associations for operational safety and soundness.”
“With today’s action, the FDIC is turning a page and moving away from the flawed approach of the past three years,” explained Acting Chairman Travis Hill, adding:
I expect this will be one of several steps the FDIC will take to outline a new approach to how banks can engage in crypto and Blockchain-related activities in compliance with the Safety and Soundness Standards.
Coordination with the President’s Working Group on Digital Asset Markets will continue as the FDIC develops further guidance and works with partner agencies. These efforts are aimed at harmonizing standards and creating a consistent regulatory landscape for crypto activities across the banking system.
Earlier this month, the OCC updated its position through Interpretive Letter 1183, establishing a formal pathway for federally chartered banks and savings associations to participate in specific cryptocurrency functions, including providing custody services, managing stablecoin operations, and participating in distributed ledger systems. According to figures released by the OCC, over 1,000 institutions were under its jurisdiction in 2024.
[newsletter_form lists="1"]
