FDIC Gives Banks Freedom To Explore Crypto With New Rules

• FDIC now allows supervised banks to engage in crypto activities without prior approval, if risks are properly managed.
• FIL-7-2025 replaces old guidance, giving banks clearer direction and flexibility in entering crypto services.

The United States Federal Deposit Insurance Corporation (FDIC) has finally overhauled its approach to bank involvement in the digital asset world. Through Financial Institution Letter FIL-7-2025 released on March 28, 2025, the authority officially allows banks under its supervision to carry out crypto-related activities—as long as they are able to manage their risks well.

There is no longer a need for initial permission, which used to be a barrier. As a consequence, the FDIC also revoked its previous guidance letter, FIL-16-2022, issued in 2022.

Green Light Given, But Caution Still Required

This step is a kind of green light for banks that have been stuck in a difficult position. Wanting to step into the crypto world but worried about breaking the rules. Wanting to stay in their comfort zone, but also realizing that this digital trend cannot be avoided. With this new regulation, their position is clearer. They can join in, as long as they are not reckless.

However, this does not mean that all doors are wide open without control. The FDIC stressed that banks must remain prudent, have a robust risk management system, and know exactly what they are doing. It’s like a parent who finally lets their child ride a motorcycle, but only if they can balance and brake.

FDIC Admits It Was Time for a Reroute

Furthermore, Travis Hill, acting chairman of the FDIC, stated that the prior method, which required FDIC permission before banks entered crypto, was deemed ineffective and that it was time to adapt to current business realities.

He also said that his office would issue additional guidance in the future so that banks don’t feel like they are exploring the wilderness without a compass.

Crypto Reserve Marks a Strategic Power Play

On the other hand, the dynamics of crypto policy in the United States are indeed shifting rapidly. Just weeks before the FDIC letter was released, President Donald Trump made a big surprise. As we have reported, he announced the creation of a “Crypto Strategic Reserve” that will hold major digital assets such as XRP, Solana (SOL), and Cardano (ADA). It’s for strengthening the US’s position as a center for digital innovation.

This move is a statement of the government’s position that crypto is no longer considered a threat—but rather a tool of economic strategy.

New Rules Bring Clarity, Not a Free-for-All

With this development, banks that have been waiting for certainty now have a more solid footing. Just imagine if all this time they have been like racers who have to wait for the green flag to go, then FIL-7-2025 is that flag. But of course, even though they can step on the gas, they still have to know when to turn, brake, or even stop.

Meanwhile, the FDIC’s decision also raises hopes that cooperation between financial institutions will become more efficient. The FDIC said it will work with other regulators to replace outdated documents related to crypto assets and replace them with new, more relevant regulations. The hope is that the digital financial ecosystem will no longer be trapped in a pile of conflicting regulations in the future.