Another U.S. bank regulator has announced that banks do not need to receive advance permission to engage in certain crypto-related activities.
The Federal Deposit Insurance Corporation (FDIC) stated that banks can participate in legally permitted activities, including those involving cryptocurrency, without prior regulatory approval, provided they manage their risks appropriately.
This announcement marks a departure from the previous FDIC policy, which required banks to obtain clearance before engaging in crypto activities.
Acting FDIC Chairman Travis Hill noted that this shift represents a new approach, moving away from the past three years' flawed policies. He also indicated that further clarifications regarding banks' engagement with crypto products and services will follow.
The FDIC's decision aligns with actions taken by the Office of the Comptroller of the Currency to facilitate banks' entry into the crypto sector.