The Federal Deposit Insurance Corporation (Fdic) announced Friday that banks no longer need prior approval to participate in activities related to cryptography. This change opens doors for banks to work with digital currencies while maintaining some supervision.
“With today’s action, the FDIC is changing the page about the defective approach of the last three years,” said the interim president of the FDIC, Travis Hill, A statement on March 28.
Banks can now handle cryptocurrency custody, administer Stablecoin reserves and participate in blockchain payment systems without obtaining prior approval. However, the FDIC will still require banks to notify them about encryption activities. Officials emphasized that banks must demonstrate that they can manage the risks related to consumer protection and financial stability.
“Institutions supervised by the FDIC can participate in permissible activities, including activities that involve new and emerging technologies, such as cryptocurrencies and digital assets, provided that the associated risks adequately manage,” the agency explained.
The policy change cancels a 2022 rule that forced banks to obtain permission before dealing with cryptocurrencies or blockchain technology.
The old restrictions faced criticism from banking groups and cryptography supporters. They argued that regulators were blocking the legitimate innovation of blockchain through paperwork barriers. TO Coinbase demand Recently they showed letters in which the Fdicting actively discouraged banks to work with cryptography under previous politics.
This regulatory adjustment follows similar movements by the Office of the Comptroller of La Moneda (OC) earlier this month. Both changes reflect the most friendly approach to the Trump administration for cryptography.
SACKS OF DAVIDThe AI of the White House and the Cryptography Advisor, described the decision of the West “a great victory for cryptography” on social networks. He praised eliminating the “risk of reputation” as a factor in how banks supervise.
The FDIC is also working with other regulatory agencies to update the obsolete orientation. Hill said this policy change is “one of the various steps that the FDIC will take” for banks that are involved with blockchain and cryptomonologies.
Financial institutions still face supervision and must follow security standards, money laundering laws and consumer protection rules when working with digital assets.
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