Just In: FDIC to Allow Banks to Manage Crypto Assets and Token Deposits

The Federal Deposit Insurance Corporation (FDIC) is set to revise its guidelines, allowing U.S. banks to manage crypto assets and offer tokenized deposits without prior regulatory approval. This decision marks a shift in U.S. banking policy under the Trump administration, which has shown increased support for digital assets.

Acting FDIC Chairman Travis Hill confirmed the changes during a Senate hearing, stating that the agency is reassessing its past approach to cryptocurrency regulations.

FDIC to Change Crypto Regulations for Banks

The FDIC’s decision to revise its crypto guidelines is part of an ongoing review of past regulatory policies that discouraged banks from engaging with crypto assets. Hill stated that banks seeking to enter the sector had faced delays, excessive scrutiny, and resistance from regulators.

During his testimony, Hill explained,

“Requests from these banks were almost universally met with resistance, ranging from repeated requests for further information to directives from supervisors to refrain from expanding crypto- or blockchain-related activity.”

The FDIC has also released a series of internal documents detailing past communications with banks regarding cryptocurrency. These records were disclosed as part of a court order in response to a lawsuit by Coinbase, which had sought transparency on regulatory actions affecting the industry.

Senate Banking Committee Investigates Crypto Debanking

The Senate Banking Committee held a hearing to examine allegations that U.S. regulators pressured banks to sever ties with crypto assets firms. Nathan McCauley, CEO of Anchorage Digital, testified that banks were hesitant to engage with cryptocurrency due to regulatory concerns.

McCauley told senators, “All of the big banks wanted to work with crypto and were scared away from it by the regulatory apparatus.” He added that the issue had become so widespread that crypto firms expected difficulties accessing banking services.

Senator Elizabeth Warren acknowledged that financial institutions should not deny services to legal businesses. She stated, “I don’t think for a second that you should be locked out of our banking system.” The congressional review of debanking policies is set to continue, with a House Financial Services Committee hearing scheduled for Thursday.

U.S. Banks Expected to Expand Crypto Services

With the FDIC removing regulatory barriers, banks may now be more inclined to enter the crypto assets sector. Bank of America CEO Brian Moynihan recently suggested that financial institutions would embrace cryptocurrency if regulations were clear.

He stated,

“If the rules come in and make it a real thing that you can actually do business with, you’ll find that the banking system will come in hard on the transaction side of it.”

As part of the revised guidelines, banks will have the ability to offer tokenized deposits, which could modernize traditional banking systems. These deposits represent digital versions of fiat currency backed by a bank, enabling faster transactions and increased efficiency.

Future of Crypto Banking in the U.S.

With the FDIC’s policy change, banks will be able to offer more services related to crypto assets while maintaining safety standards.

The move aligns with the Trump administration’s broader stance on digital assets, which includes easing restrictions on cryptocurrency-related activities and Bitcoin reserver plan.

A House Financial Services Committee hearing on February 11, titled “A Golden Age of Digital Assets: Charting a Path Forward,” will further discuss the future of digital assets in the U.S. banking system. Industry leaders and policymakers will continue to evaluate how banks can safely engage with cryptocurrency while adhering to existing financial regulations.