On March 28, the Federal Deposit Insurance Corporation (“FDIC”) rescinded Biden administration guidance^[1] and issued new guidance for FDIC-supervised banks regarding the scope of permissible “crypto-related activities” for such banks (the “Crypto Guidance”).^[2] While some aspects of the Crypto Guidance had been widely anticipated in the banking industry, other aspects represent a significant shift in the scope of permissible activities for banks and could have wide-ranging implications for the U.S. economy. 

The Crypto Guidance removes the previous requirement that banks provide notice to the FDIC prior to engaging in crypto activities. It defines “crypto-related activities” to include “acting as crypto-asset custodians; maintaining stablecoin reserves; issuing crypto and other digital assets; acting as market makers or exchange or redemption agents; participating in blockchain- and distributed ledger-based settlement or payment systems, including performing node functions; as well as related activities such as finder activities and lending.”

This broad definition potentially opens the door for banks to engage in unprecedented activities. While banks have historically been permitted to exercise some of the powers enumerated in the definition, such as custodial powers, certain other activities have no precedent. For example, the grant of authority for banks to issue cryptocurrency is a significant shift that has the potential to introduce new forms of currency into the nation’s economy. 

While some aspects of the Crypto Guidance are sending shockwaves through the banking industry, it does not represent a full departure from traditional concepts of bank regulation and supervision. Consistent with precedent, banks must engage in crypto activities in a manner that is consistent with safety and soundness principles. Additionally, banks seeking to engage in crypto activities must consider and manage the associated risks, as they would with more traditional activities. 

While the Crypto Guidance only applies to FDIC-supervised banks, the Office of the Comptroller of the Currency has issued similar guidance^[3] with respect to national banks and federal savings banks. Additional interagency guidance from the federal banking agencies will be forthcoming. 

Barley Snyder has a team of experienced bank regulatory and business attorneys who advise banks on the complexities of compliance and risk management. If you have questions about how the new Crypto Guidance could impact your operations, please contact attorney Amanda Kowalski or any member of the Barley Snyder Business Practice Group. We’re here to help you navigate this shifting landscape.

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^[1] FIL-16-2022
^[2] FDIC Clarifies Process for Banks to Engage in Crypto-Related Activities, March 28, 2025.
^[3] OCC Letter Addressing Certain Crypto-Asset Activities, March 7, 2025.