FDIC Set to Revise Crypto Guidelines, Banks to Enter Sector

The U.S. Federal Deposit Insurance Corporation (FDIC) is set to revise its guidelines, allowing banks to engage in cryptocurrency activities. This significant development is part of a broader shift in U.S. policy towards digital assets under the Trump administration.

The FDIC's planned revision aims to enable banks to operate within the crypto sector without needing prior regulatory approval. This change could accelerate the growth of cryptocurrencies like Bitcoin, which Standard Chartered forecasts to hit $500,000 by 2028.

Acting FDIC Chairman Travis Hill confirmed the changes during a Senate hearing, stating that the agency is reassessing its past approach to cryptocurrency regulations. Hill acknowledged that banks seeking to enter the sector had faced delays, excessive scrutiny, and resistance from regulators.

The FDIC has also released a series of internal documents detailing past communications with banks regarding cryptocurrency. These records were disclosed as part of a court order in response to a lawsuit by Coinbase, which had sought transparency on regulatory actions affecting the industry.

Bank of America CEO Brian Moynihan has already expressed support for banks actively participating in crypto transactions once the legal framework allows it. Moynihan referred to cryptocurrencies as "just another form of payment."

If the rules are updated, banks would quickly jump into the crypto space, potentially reducing volatility and significantly boosting the value of cryptocurrencies worldwide.