The US Federal Deposit Insurance Corporation has rescinded Financial Institution Letter 16-2022, removing the requirement for FDIC-supervised banks to obtain prior approval before engaging in permissible crypto-related activities.
Under the previous policy, banks were required to notify the FDIC and wait for a supervisory non-objection before proceeding with any crypto or digital asset activity — a process that created significant friction and uncertainty for institutions exploring blockchain-based products. The rescission means banks can now pursue permissible crypto-related activities provided they manage associated risks appropriately, without needing to clear the activity with regulators in advance.
The policy change is a material shift in the US banking regulatory environment for digital assets. Combined with broader signals from US financial regulators in early 2025 — including more accommodative postures from the OCC and Federal Reserve — it suggests a structural change in how US bank regulators are approaching blockchain and digital asset activities rather than a one-off adjustment.
According to the FDIC's guidance, institutions are still expected to have appropriate risk management frameworks in place. The change removes the pre-approval gate, not the underlying expectation of prudent risk management.