$ETH FDIC Signals Regulatory Shift Toward Digital Asset Innovation

Acting Chairman Travis Hill outlined the U.S. Federal Deposit Insurance Corporation’s (FDIC) evolving approach toward digital assets and blockchain technology in his address at the American Bankers Association’s Washington Summit on April 8, signaling a notable shift toward regulatory openness.

In remarks, Hill disclosed that the FDIC already has revised some key policies to decrease the barriers to banks exploring in crypto-related activities. That was until the agency recently reversed course and rescinded the rule that had for years discouraged banks from engaging in crypto operations, mandating them to first get approval from the agency before doing so.

FDIC Removes Approval Requirement for Crypto Activities

Hill also said that FDIC-supervised institutions can conduct permissible crypto-associated activities without prior approval from the Federal Deposit Insurance Corporation and that such activities will be treated the same as other traditional banking activities. Hill stated:

“Permissible crypto-related activities will generally be treated just like other permissible activities.”