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What happened?
The Federal Deposit Insurance Corporation (FDIC) issued new guidance that allows supervised banks in the United States to engage in crypto-related activities without needing prior approval. This change rescinds a previous policy from 2022 that required banks to notify the FDIC before starting any crypto operations. The update is part of a larger re-examination of how federal agencies handle digital assets within the banking sector.
Who does this affect?
The new guidance primarily affects banks and financial institutions that are considering offering or expanding their crypto-related services. It also impacts consumers and businesses interested in using banking services to deal with cryptocurrencies, as they might see more options in the market. Additionally, this could influence other regulatory bodies and financial sectors by setting a precedent for digital asset integration.
Why does this matter?
This shift in regulatory stance is significant for the market because it reduces barriers for banks to enter the crypto space, potentially leading to greater adoption and innovation in financial products and services. By removing the need for prior approval, the FDIC is signaling openness to integrating traditional banking with digital trends, which could encourage more investment and development in the crypto industry. However, banks must still comply with safety and soundness standards, which ensures ongoing oversight and risk management.
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