FDIC Rescinds Biden-Era Crypto Rules, Fosters Innovation

s latest price was $, in the last 24 hours. The Federal Deposit Insurance Corporation (FDIC) has made significant strides in its approach to digital assets and debanking, marking a pivotal shift in its policy agenda. During the September 2025 Financial Stability Oversight Council meeting, the FDIC placed digital assets and debanking at the forefront of its discussions. Acting Chairman Travis Hill announced that the FDIC had rescinded the Biden-era 'prior notification' requirements, allowing banks to engage in permissible crypto-asset activities. This move is part of a broader effort to provide clarity and transparency in the digital asset space, aiming to foster innovation while maintaining systemic stability.

Hill highlighted that the FDIC has begun implementing the GENIUS Act and recommendations from the President’s Working Group on Digital Asset Markets. These efforts are designed to modernize crypto regulation and ensure that banks can explore digital asset services without unnecessary barriers. The FDIC has also released hundreds of pages of supervisory correspondence to provide transparency regarding the prior administration’s approach to digital assets, revealing how earlier policies constrained bank participation.

In addition to digital assets, Hill focused on debanking, outlining a rulemaking effort to prevent examiners from directing banks to close accounts based on political, cultural, religious, or reputational factors. Reviews of supervised institutions are underway to ensure compliance with the presidential executive order on fair banking. While critics argue that limiting examiner discretion could introduce risk, advocates of both crypto adoption and fair banking reforms contend that the FDIC’s new direction fosters financial inclusion, encourages responsible blockchain use, and enhances U.S. competitiveness in global markets.

Another long-term Bitcoin whale awakened on Thursday, moving a chunk of their $50 million in BTC holdings after nearly 13 years. The "HODLer" first acquired the 444.81 BTC in 2012, when it was trading for a little over $12 per coin, blockchain data shows. Their movements—a transaction shifting 137.03 BTC, or nearly $16 million in crypto, come after a number of long-time, large crypto investors also cashed out on at least part of their holdings. The most notable of these transactions occurred in July when a whale sold more than 80,000 Bitcoin—over $9 billion at the time—after holding the coins for 14 years. A Bitcoin whale is usually defined as an individual investor or entity that holds at least 1,000 BTC or more, although some analysts use the term for any big holder.

Doug Colkitt, an early contributor to layer-1 blockchain Fogo and CEO of Crocodile Labs, noted that "when a wallet wakes up after 13 years, it’s never random." Early whales are some of the sharpest operators in the space; they don’t move coins unless they see opportunity or risk. Dormant whales remind us how young Bitcoin still is. Some of the biggest balances are controlled by early adopters who barely touch them. In an email, Jeff Dorman, CIO of crypto-focused asset manager Arca, wrote that the trend may link to the growth of treasuries. While we can't say for certain, our view is that some BTC whales may be reactivating because they're being asked to contribute in-kind to newly formed digital asset treasuries. Long-time investors may be being asked to donate their coins. Those firms, following the lead of Strategy—formerly MicroStrategy—have raised tens of billions of dollars to purchase Bitcoin, Ethereum and certain altcoins. And while analysts at JP Morgan said this week that investors are becoming fatigued by the trend, a number of companies that have adopted the strategy have generated healthy stock price gains. When whales wake up, selling pressure sometimes follows as investors expect the entity to start liquidating their holdings. A whale shifting after a decade spooks traders into front-running potential sell pressure. The irony is that most of these transfers never hit exchanges, but the fear alone can move markets.