The Federal Deposit Insurance Corporation (FDIC) has updated its instructions, allowing banks to engage in activities related to the encrypted currency without requesting prior approval. This new political transformation indicates a change in the FDIC approach to the increasing role of digital assets in the banking sector.
New FDIC instructions on encryption activities
FDIC released a new financial institution letter (FIL-7-2025), which provides updated guidelines for banks looking to participate in encrypted currency activities. The new guidance cancels the previous policy stipulated in the FIL-16-2022, which requires banks to notify FDIC before engaging in such activities.
Under the new rules, banks can now participate in the permitted encryption activities without waiting for FDIC approval, as long as they manage the risks appropriately.
This change is seen as turning in the FDIC position, following the previous position of the agency, which requires prior approval for encryption links. The Chairman of the FDIC Travis Hill expressed that this new approach aims to create a more consistent frame for banks to explore and adopt emerging technologies such as cryptocurrencies and Blockchain.
“With today’s procedure, FDIC transforms the page on the defective approach during the past three years,” Hill said in a statement.
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Kelvin Monin Murithi
Kelvin is a distinguished writer who has experience in encryption and financing, holding a Bachelor’s degree in Actura Sciences. It is famous for its careful analysis and insightful content.
Responsibility: Is market research before investing in encrypted currencies? The author or post does not bear any responsibility for your personal financial loss.
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