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3 Impacts Of The FDIC’s New Crypto Guidance On U.S. Banks
Blockdaemon
In March 2025, the Federal Deposit Insurance Corporation (FDIC) issued Financial Institution Letter 7-2025 (FIL-7-2025), marking a major policy shift for crypto-related activities by U.S. banks.
The new guidance makes it clear that FDIC-supervised institutions may engage in crypto-related activities - like crypto custody, stablecoin reserve management, and participation in blockchain networks - without prior FDIC approval, as long as they responsibly manage associated risks. This rescinds the prior more restrictive stance from the April 2022 letter (FIL-16-2022), which had required institutions to notify the FDIC before engaging in crypto activities.
Removing this major procedural hurdle clears the way for more meaningful crypto-related activities, and will impact banking adoption of crypto in the following three ways:
1. Crypto Is Now “Business as Usual” For U.S. Banks
The FDIC’s updated guidance normalizes crypto related activities for banks. Instead of crypto and blockchain being treated as experimental or ‘fringe’, it treats web3 related offerings as a standard part of the financial architecture. Crypto related products and services are now treated as any other product or service line offered by banks, with the same expectations around due diligence, compliance, and risk management. As the FDIC states, “permissible crypto-related activities will generally be treated just like other permissible activities”.
This unlock means that banks can more confidently rollout new crypto products within their existing risk and compliance frameworks.
2. Stronger, Smarter Partnerships Between Banks And Web3 Companies
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