FDIC Set to Revise Guidelines, Banks to Enter Crypto Space

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, which aims to overhaul regulations in the sector.

The FDIC is reportedly planning to update its rules to enable banks to operate within the crypto space without needing prior regulatory approval. This change could accelerate the growth of cryptocurrencies like Bitcoin, which Standard Chartered has forecast 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.

In a new press release, the FDIC announced the unsealing of 175 documents that expose how U.S. institutions were instructed to deprive crypto-related services. The documents reveal that the FDIC made it difficult for banks to expose themselves to digital assets and blockchain services, leading many to give up trying.

Last December, a Freedom of Information Act (FOIA) request by Coinbase found dozens of instances where the FDIC asked banks to freeze crypto-related services. Coinbase chief legal officer Paul Grewal said the information all but confirmed the notion that the U.S. government was attempting to undermine the digital assets industry was not a conspiracy theory.

With Donald Trump back in office, the U.S. government’s approach to cryptocurrency has changed. The Securities and Exchange Commission (SEC) is working to redefine the future of digital assets in the country. If the FDIC updates its rules, banks would quickly jump into the crypto space, as confirmed by Bank of America CEO Brian Moynihan.