FDIC Drops Pre-Approval Rule for Banks in Crypto, Easing Path for Mainstream Adoption

In Brief:

The FDIC no longer requires prior approval for banks to engage in crypto activities.

David Sacks says this will accelerate the mainstreaming of crypto in the U.S. financial system.

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The U.S. Federal Deposit Insurance Corporation (FDIC) has officially removed the pre-approval requirement for banks engaging in crypto-related activities. Under the new guidelines, banks can now enter the digital asset space without first obtaining regulatory clearance—provided they demonstrate adequate risk management protocols.

David Sacks, the White House’s Director of Cryptocurrency and AI Policy, welcomed the change, stating:

“FDIC is making it easier for banks to engage in crypto-related activities, which is one of the best ways to further promote cryptocurrency mainstreaming.”

This regulatory shift marks a significant step toward integrating digital assets into traditional banking infrastructure. While banks are still expected to ensure compliance and manage associated risks, the elimination of prior approval simplifies the process for financial institutions seeking to offer crypto services.

The move is widely seen as part of the broader shift in U.S. crypto policy under the Trump administration, which has prioritized innovation, deregulation, and institutional adoption of blockchain technologies.

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