FDIC’s Evolving Approach to Crypto Banking Regulation and the New Administration's Efforts to Provide Clarity

Nicolle Lafosse

Of Counsel



Diaz Reus International Law Firm

In the U.S. financial landscape, the regulation of cryptocurrencies has become one of the most important and contentious issues, with banks and other financial organizations negotiating unfamiliar territory. As more conventional financial institutions consider providing crypto-related services, the Federal Deposit Insurance Corporation (FDIC) has responded by starting to reevaluate its stance on crypto banking. In addition to this dynamic, President Donald Trump's new U.S. government has made it clear that it wants to increase regulatory clarity in the cryptocurrency industry. The future of digital currencies in the United States and their effects on the overall economy will be shaped by these developments.

In the past year, banks like JPMorgan Chase, BNY Mellon, and U.S. Bank have made headlines by offering crypto services, from allowing clients to trade cryptocurrencies to providing secure custody for digital assets. However, these efforts have been somewhat hampered by the FDIC's recent moves.

Early in 2025, FDIC “pause” letters advised banks to put a halt to specific cryptocurrency-related operations until more regulatory clarity was obtained. The FDIC has taken a more measured approach, meanwhile, by refraining from ordering banks to cut their connections with cryptocurrency companies. The FDIC voiced worries in these conversations about potential regulatory gaps, cybersecurity vulnerabilities, and fraud risks that might jeopardize the financial system's stability. The FDIC's "pause" letters demonstrate a sophisticated strategy that aims to achieve a balance between encouraging innovation and guaranteeing the stability and safety of the financial system.