FDIC: US Banks Can Engage In Crypto-Related Activities Without Prior Approval
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
According to a new statement by the Federal Deposit Insurance Corporation (FDIC), US banks are no longer required to receive approval before they engage in crypto-related activities.
The watchdog stated that companies that it supervises are now permitted to carry out “permissible activities” that involve new and emerging technologies. This primarily hints at cryptocurrencies and digital assets in a broader sense.
Of course, banks will still be expected to adequately manage any and all risks associated with the crypto sector, but in a more crypto-friendly US, simply engaging with digital assets no longer requires special permissions to be obtained before they make their move.
The new stance is in sharp contrast with the FDIC’s former policy of requiring banks to clear any and all crypto-involving activities before they can legally carry them out.
A Major Shift Among The US Regulators
Commenting on the new announcement, FDIC’s acting chairman, Travis Hill, stated that the new action will see FDIC officially turn the page on the approach it used over the past three years. Hill even described the past approach as flawed, adding that he expects this to be one of several new steps that the organization would take to lay out a new approach on how banks can engage in crypto/blockchain-related activities.
Once again, any and all activities involving the crypto sector are still expected to be taken in accordance with proper safety and soundness standards. But, other than that, the banks now get to enjoy new freedoms in how they operate in regard to the crypto sector.
This, just like many other decisions made in the past two months, come as part of a wider relaxation of crypto rules in the United States under the Trump administration. Another example includes the US SEC stopping its legal pursuit of crypto companies, many of which have been accused of offering securities without proper licensing.
Apart from that, the Office of the Comptroller of the Currency also recently made a similar announcement involving digital assets. The CFTC, another major US regulator focusing on commodities, also withdrew its advisory regarding crypto derivative listings. All of these events represent a major shift in the United States’ stance towards crypto, making the country a lot more crypto-friendly, which could be seen as an invitation to crypto businesses to establish themselves in the country.
