FDIC Set to Revise Guidelines, Allowing Banks to Engage in Crypto Activities
The post FDIC Set to Revise Guidelines, Allowing Banks to Engage in Crypto Activities appeared first on Coinpedia Fintech News
In a significant development, the US Federal Deposit Insurance Corporation (FDIC) is reportedly planning to revise its guidelines, allowing banks to engage in crypto activities.
FDIC to Revise Crypto Guidelines Marking Huge Shift
This development is part of the broader shift in the U.S. under the pro-crypto Trump administration, which aims to overhaul policies toward digital assets. Now, the FDIC may be ready to change how banks engage with the crypto sector. According to a Barron’s report, the agency aims to enable institutions to operate within the sector without needing prior regulatory approval. This includes potential “tokenized deposits” that could put some checking accounts on blockchains.
The FDIC is revising its crypto guidelines as part of a review of past regulations that prevented banks from getting involved with crypto assets. Acting Chairman Travis Hill mentioned that banks wanting to enter the sector faced delays, excessive scrutiny, and resistance from regulators.
FDIC Released Internal Documents
Hill explained that most of these banks’ requests were met with obstacles, such as repeated requests for more information and orders to pause or limit crypto activities. The FDIC also released internal documents about past communications with banks on crypto, following a court order from a lawsuit filed by Coinbase, seeking transparency on regulatory actions.
If the rules are updated, banks would quickly jump into the crypto space. Just two weeks ago, Bank of America CEO Brian Moynihan confirmed this saying that once the legal framework allows it, banks will actively participate in crypto transactions. With Standard Chartered forecasting Bitcoin to hit $500,000 by 2028, these adjustments could accelerate its growth. Easier access and reduced volatility could significantly boost its value worldwide.
