On March 28, 2025, the U.S. Federal Deposit Insurance Corporation (FDIC) issued new guidance, outlined in Financial Institution Letter (FIL-7-2025), permitting FDIC-supervised institutions to engage in permissible crypto-related activities without requiring prior approval from the FDIC.

This development rescinds the earlier FIL-16-2022, which mandated that banks notify the FDIC before engaging in any crypto-related activities. The updated guidance affirms that while institutions are allowed to participate in crypto-related activities, they must ensure these activities are conducted safely, soundly, and in compliance with all applicable laws and regulations. The FDIC emphasizes the importance of adequately managing associated risks, including market and liquidity risks, operational and cybersecurity threats, consumer protection considerations, and adherence to anti-money laundering requirements. #CyberSecurity #USFederal #FDIC