The United States Federal Deposit Insurance Corporation (FDIC) published a notable Financial Institution Letter (FIL-7-2025) today that provides updated guidance for financial institutions under its supervision currently participating in or considering involvement in crypto-related activities.
New Rule Eases Regulatory Constraints
This new guidance replaces the previous FIL-16-2022, signaling a significant adjustment in regulatory policy by permitting FDIC-supervised institutions to engage in permissible crypto activities without requiring prior approval from the FDIC.
The revised guidance specifies that institutions may engage in various approved activities involving innovative technologies, including crypto-assets and digital assets, provided it can effectively identify, manage, and mitigate the associated risks to uphold the integrity of its operations.
FDIC Acting Chairman Travis Hill emphasized the importance of this update, remarking that the FDIC is moving forward from past approaches that have proven inadequate. He recognizes the critical role of emerging technologies in the financial sector. He hopes this initiative is part of a broader effort to establish an understandable framework for responsible engagement in crypto and blockchain-related activities while maintaining rigorous safety and soundness standards.
FDIC Welcomes Support and Collaboration
Furthermore, the FDIC plans to continue collaborating with the President’s Working Group on Digital Asset Markets and will issue additional guidance shortly. This forthcoming guidance will further explain the banks’ engagements in specific crypto-related activities.
Additionally, the FDIC will work alongside other banking regulatory agencies to update existing interagency documentation related to crypto-assets, ensuring that regulatory frameworks are aligned with the ever-changing landscape of digital finance, including compliance with the UK Financial Conduct Authority (FCA), the Payment Services Directive 2 (PSD2) E-money license, the Markets in Financial Instruments Directive II (MiFID II) license, and Virtual Asset Service Provider (VASP) registrations in various markets.
Like the U.S., other countries are actively exploring crypto adoption. For instance, Pakistan recently established a regulatory framework. Similar to initiatives taken by several other countries, it aims to attract international investors and create economic opportunities in the digital finance sector. The South Asian country wants to draw up a clear regulatory framework that will guardrail crypto trading platforms, tokenization, and Bitcoin mining and make it a leader in blockchain-powered finance.
