FDIC rescinds prior-approval expectations for bank crypto-related activities

What changed

The FDIC rescinded FIL-16-2022 and stated that FDIC-supervised institutions may engage in permissible crypto-related activities without first notifying the agency or receiving nonobjection. Institutions must continue to manage safety, soundness, consumer-protection, and legal risks.

Who it affects

• FDIC-supervised banks
• Advisers evaluating bank custody, payment, and settlement providers

What is still open

• How supervised banks will implement new services
• Activity-specific supervisory expectations and consumer disclosures

What it means for an advisor

• Refresh bank-provider diligence and service-availability assumptions
• Confirm the institution’s actual authority, controls, and contract terms for the contemplated client workflow

Previous interpretation

FIL-16-2022 directed FDIC-supervised institutions to notify the agency and obtain supervisory feedback before engaging in crypto-related activities.