The US FDIC says banks can engage in cryptocurrency and other legally permitted activities without prior regulatory approval if they manage risks appropriately
Basically the crypto version of the housing crisis. @opinionatedogre : Because greedy banks are historically known for self-restraint and managing risks appropriately... Holy shit, the next Wall St. crash is going to make us long for the good ol' days of the Great Depression. @samgemar : This country learns *nothing* from its past mistakes. Time to rewatch “The Big Short” ... 🙄 [embedded post] Michael Alves / @mikealves : Ok. Where's everyone putting their money? @coffeeholic : bank crisis 2008 sends its regards [embedded post] @boblv : That's it! Everyone better be prepared for the next Great Depression. — And this time I don't want to hear anymore say we need to bail out the banks. Mastodon: @slyborg@vmst.io : @Techmeme Make America Grift Again! X: Tyler Winklevoss / @tyler : This is what we voted for. Thank you to the Trump Administration for your leadership in turning banking rails back on for crypto companies. Promises made, promises kept! [image] LinkedIn: Carleton Goss : The latest from the FDIC on crypto-activities. Notable is the list of crypto-related activities in footnote 1: — * acting as crypto-asset custodians; … Alex Treece : Huge news - FIL-16 has been rescinded and new guidance has been issued: FDIC-supervised banks can engage in digital asset activities … Alexandra Steinberg Barrage : The FDIC has rescinded FIL-16-2022 and provided new guidance on crypto-related activities! — FDIC-supervised institutions may engage … Forums: Hacker News : FDIC says banks can engage in crypto activities without prior approval BeauHD / Slashdot : FDIC Rescinds Guidance Around Banks and Crypto
Context & Ripple Effects
The FDIC's move extends the direction set by the OCC earlier in March, when it removed a prior expectation that banks clear certain crypto activities in advance. It reverses course from the joint [[a:832912|2023 agency warning that bank crypto holdings or issuance were likely incompatible with safe banking]].
The change matters because it shifts crypto activity from an exceptional approval track toward ordinary bank risk management and supervision. That direction was later reinforced when the Federal Reserve withdrew its own prior-notice guidance.
First-order effects
- FDIC-supervised banks can evaluate legally permitted crypto and digital-asset activities without obtaining prior FDIC approval, provided they manage the associated risks appropriately.
- The rescission of FIL-16-2022 removes a specific procedural hurdle, while leaving banks responsible for controls, governance, and safe-and-sound operation.
Second-order effects
- Banks that had delayed crypto offerings over regulatory clearance can reassess those plans under their standard risk frameworks; compliance and risk teams become the principal internal gatekeepers.
- The FDIC's stance brings its approach closer to the OCC's earlier rollback of pre-clearance expectations, reducing policy divergence among major federal bank regulators.
Third-order effects
- If supervisory practice remains aligned across agencies, crypto activity could become more integrated into regulated banking rather than being handled chiefly through specialized or nonbank providers.
- The policy places greater weight on ongoing examination and bank-level risk controls than on advance permission, making the quality and consistency of supervision the key constraint on expansion.
The trend: US bank regulators are moving from pre-approval barriers toward risk-managed integration of legally permitted crypto activities into conventional banking supervision.