The Federal Deposit Insurance Corporation (FDIC) announced on March 28 that banks and other institutions under its supervision can now engage in cryptocurrency-related activities without prior approval.
This follows the US Commodity Futures Trading Commission's (CFTC) declaration that digital asset derivatives will be treated like any other derivative.
The FDIC letter overrides an earlier mandate from the Biden administration that required notification before engaging in cryptocurrency-related activities.
The FDIC emphasized that institutions must assess the risks associated with cryptocurrency activities, including market and liquidity risks, operational and cybersecurity threats, consumer protection obligations, and anti-money laundering requirements.