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FDIC Rescinds Guidance Around Banks and Crypto 47

The Federal Deposit Insurance Corporation (FDIC) says banks no longer need prior approval before engaging in crypto-related activities, such as holding digital currency assets or partnering with companies in the industry. Axios reports: After publishing a general caution against banks participating in the industry just two years ago, the FDIC is the latest Trump administration regulator to change its tune entirely amid the president's warm embrace of crypto. "With today's action, the FDIC is turning the page on the flawed approach of the past three years," FDIC acting chairman Travis Hill said in a statement.

The OCC was the first of those regulators to revise their guidance, telling banks it supervises earlier this month that they no longer need permission to engage in certain common cryptocurrency-related activities. The Fed as of Friday had not issued any update, though chair Jerome Powell told lawmakers during a congressional hearing last month that the central bank would take a fresh look at the guidance. The new policy clarifies that "FDIC-supervised institutions may engage in permissible activities, including ... digital assets, provided that they adequately manage the associated risks."

FDIC Rescinds Guidance Around Banks and Crypto

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  • by ebunga ( 95613 ) on Friday March 28, 2025 @08:38PM (#65266923)

    Maybe it is finally time to buy some gold.

    • by rsilvergun ( 571051 ) on Friday March 28, 2025 @10:09PM (#65267101)
      Not sure if Gold will help. I mean, at this rate canned food will be more valuable.
      • Not sure if Gold will help. I mean, at this rate canned food will be more valuable.

        Lately I've been getting a lot of videos in my Facebook feed from some guy who opens up old canned food amongst a bunch of Fallout (the video game) themed kitsch. Spoiler alert: most of it is spoiled.

        Unless you're prepping for nuclear winter, the more realistic way to deal with potential food scarcity issues is the way people did during the Great Depression - growing a garden and if possible, keeping small livestock such as chickens and rabbits. Failing that, well, assuming you've seen the movie Demolitio

  • by sdinfoserv ( 1793266 ) on Friday March 28, 2025 @08:38PM (#65266927)
    My god this administration is a disaster.
    • The cultists think he is doing a great job everything they ever wanted and he was brought to us by Jesus.

      But it is not a cult. According to them, anyway. So stop calling it that.

  • Purely to appease the crypto tech bros, wonder how long till we get to the next coin crash.
    • by gtall ( 79522 )

      Wong, it was purely to raise the wealth of el Biunlo. He and his alleged wife have their own shit coins. And now he's got the U.S. Treasury backing some shitcoin to increase the value of the shitcoin market, including his own.

      As usual with this alleged administration, for every decision look to see where the trail of McNuggets lead back into his pocket. Trust nothing they or any of its "agencies" say or any "reports" they may feed to the corporate press. All their "data" must be considered suspect since the

  • So, 2028 will be the new 2008?

    • no, it's worse. In 2008 the Federal Reserve, chaired by a former Goldman Sachs employee, re-inflated a collapsed financial system bailing out the banks at the expense of the citizenry with $900B. (remember, Trump wants to give the billionaires an $880B annual tax break paid for by dismantling the Government).. . This is the entire global world order for sale via Trump coin.
      • Well, hopefully there will not be the corporate wellfare we had in 2008. The trend of the companies taking the profits, but taxepayers paying the costs should stop.

        "Too big to fail" should not exist, the companies should just fail and their assets then sold on bankruptcy to be run by more comepetent people.

    • Re:Deja Vu! (Score:5, Insightful)

      by Jeremi ( 14640 ) on Friday March 28, 2025 @09:29PM (#65267011) Homepage

      So, 2028 will be the new 2008?

      You should be so lucky; more likely 1929.

  • by hdyoung ( 5182939 ) on Friday March 28, 2025 @08:45PM (#65266939)
    of the paragraph. FDIC coverage is good “provided the bank adequately manages it’s risk”.

    Yeah, any bank that loses it’s shirt in a crypto bust is gonna fail that requirement. I doubt the FDIC will hang any mainstreet depositors out to dry because some cryptobro stood up a “bank” and gambled with depositor money. But you can be sure that the cryptobro is gonna get a solid 25-year sentence in the cell right next to SBF.

    But it might take years for those depositors to get their money back. Regulatory guardrails are being torn down. Fine. I get it. Let people and companies innovate. But you better choose your friends carefully or you’ll find youself on the next cryptobus that goes over the cliff.
    • But you can be sure that the cryptobro is gonna get a solid 25-year sentence in the cell right next to SBF.

      Depends. If SBF can access some of those overseas hidden funds, he should be able to purchase a presidential pardon based on what we're seeing now. With Trump in office, that's the moral of the story. Stash away enough stolen money to buy a get out of
      jail free card.

    • they'll be fine. SBF is in trouble because he screwed with the elites. Same thing with Bernie Madoff & Liz Holmes.
    • But it might take years for those depositors to get their money back.

      They'll probably be offered 10-25 cents per dollar and be happy to cut their loss. And the FDIC can still claim all deposits were fully insured.

  • Pay the Tump (Score:4, Insightful)

    by sdinfoserv ( 1793266 ) on Friday March 28, 2025 @08:50PM (#65266953)
    This happened because Lord Trumpkin unleashed his own stable coin (coin tied to the USD) https://www.msn.com/en-us/mone... [msn.com]
    Now foreign hostiles can pay-to-play directly into Trumps pockets. There's nothing stopping Vladimier Putin from buying $50B in Trump coin with Russian money to get even more of Trumps favor. Get Trump to withhold battlefield intelligence from the Ukraine, turn on NATO, isolate and dismantle 70 year old alliances... it's all for sale.
  • Wait for it... (Score:5, Interesting)

    by abulafia ( 7826 ) on Friday March 28, 2025 @08:54PM (#65266959)
    Step two is a "stablecoin holding requirement" or a similar, demanding banks keep some percentage of their reserves in a national shitcoin.
  • We're not far from them.
  • by fahrbot-bot ( 874524 ) on Friday March 28, 2025 @09:44PM (#65267059)

    ... provided that they adequately manage the associated risks. The FDIC expects that FDIC-supervised institutions conduct all activities in a safe and sound manner and consistent with all applicable laws and regulations.

    Well, as long as the FDIC "expects" banks to be good, I guess they always will. 'Cause that's never gone wrong. Problem solved. Good thing Crypto is super simple and super low-risk. /s :-)

  • The banks will surely hold to practices that encourage reasonable growth and stability over risk.

    To be clear, though, this one worries me. I've decided to pull up a chair, make some popcorn, and watch with more than a little schadenfreude as the US slowly implodes while the world realigns around them... but I'd rather their fiscal structures wait to break down until a better exchange medium is agreed upon. It's happening, but the collapse could move faster than the migration.

    The short term will be bumpy, bu

  • get your looting of the state in NOW!

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