FDIC Set to Revise Crypto Guidelines, Boosting Bitcoin's $500K Forecast

The U.S. Federal Deposit Insurance Corporation (FDIC) is set to revise its guidelines, allowing banks to engage in cryptocurrency activities. This significant shift in policy comes as the Trump administration seeks to overhaul regulations toward digital assets.

The FDIC is reportedly planning to update its guidelines to enable banks to operate within the crypto sector without needing prior regulatory approval. This move 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.

The FDIC is currently reevaluating its regulation of cryptocurrency activities, including replacing Financial Institution Letter (FIL) 16-2022 and providing institutions with a pathway to engage in cryptocurrency and blockchain-related activities while adhering to safety and soundness principles.

The FDIC plans to revise its cryptocurrency guidance to allow banks to engage in certain cryptocurrency activities, with bank officials meeting to discuss cryptocurrency custody and tokenized deposits. This move aims to enable banks to participate in the crypto sector more actively and efficiently.