- The FDIC joins the OCC in walking back crypto restrictions.
- Acting Chair Travis Hill said the agency is shifting from past failed policies.
The US Federal Deposit Insurance Corporation has reversed its previous stance requiring banks to seek prior approval before engaging in crypto-related activities.
In a statement released Friday, acting FDIC Chairman Travis Hill said the agency is “turning the page on the flawed approach of the past three years.”
Banks can now engage in legally permissible crypto activities so long as they manage risks appropriately, Hill added, with further guidance expected in the coming months.
The announcement follows a similar directive from the Office of the Comptroller of the Currency, which on Thursday removed references to “reputation risk” from its manuals — language that critics say has been used to justify the exclusion of crypto firms from the banking system.
The issue of so-called crypto “debanking” has become increasingly politicised.
The crypto industry has long alleged that regulators, under the Biden administration, pressured banks to deny service to firms dealing with digital assets.
The matter resurfaced in November after venture capitalist Marc Andreessen raised concerns in a Joe Rogan podcast appearance.
In response, lawmakers have introduced the Fair Access to Banking Act, or FIRM Act, which would eliminate reputational risk considerations altogether.
Supporters say the bill would prevent regulators from politicising access to financial services.
Its opponents argue it could expose banks to higher risks and reduce consumer protections.
In February, the House Oversight Committee launched an investigation into alleged pressure tactics by regulators, including redacted “pause letters” sent by the FDIC.
Kyle Baird is DL News’ Weekend Editor. Got a tip? Email at kbaird@dlnews.com.
