The Federal Deposit Insurance Corporation (FDIC) of the United States will establish new rules for banks participating in Crypto Assets business

The Federal Deposit Insurance Corporation (FDIC) announced yesterday (5) that it is actively re-evaluating its regulatory approach to encryption-related activities, deliberately preventing banks from engaging in Cryptocurrency business. FDIC Acting Chairman Travis Hill stated that institutions will be provided with a path to participate in Cryptocurrency and Blockchain-related activities while still adhering to safety and soundness principles. The FDIC has publicly released a batch of documents related to its regulation of Cryptocurrency activities. These documents indicate that FDIC has taken a conservative stance on banks engaging in encryption-related business in the past and has exerted greater pressure on banks intending to engage in such business. In response, Acting Chairman Travis Hill stated that they are actively re-evaluating their regulatory approach to encryption-related activities. Hill also expressed that FDIC looks forward to cooperating with the Digital Asset Market Working Group established by the presidential executive order. KOL MartyParty mentioned that banks can now custodize clients' Cryptocurrency, and these assets will be insured by FDIC. The previous FDIC Letter 16-2022, which prohibited banks from engaging in any Cryptocurrency-related business, has been withdrawn and replaced. It is believed that during the Trump administration, many federal officials began to re-evaluate their past policy positions, especially in the Cryptocurrency field. The content of FIL 16-2022 requires all Financial Institutions under FDIC supervision, intending to engage in or already engaged in Cryptocurrency-related activities, to report to FDIC.