The Federal Deposit Insurance Corporation (FDIC) is adjusting its digital asset policy from the Trump administration, removing the requirement for financial institutions to notify before engaging in cryptocurrency-related activities.

In the latest statement on March 15, FDIC confirmed it will revoke the old guidance and replace it with new guidance, allowing supervised institutions to "conduct cryptocurrency-related activities within the permitted scope" without prior approval from the agency.

This decision marks a significant change from the policy of the past three years. FDIC Acting Chairman Travis Hill emphasized:

"FDIC is turning a new page, abandoning the previous misguided approach. I expect this to be just the beginning of adjustments to help banks participate in the cryptocurrency and blockchain field under safe and sound standards."

Previously, FDIC had warned that cryptocurrency-related activities could pose risks to the US banking system. Therefore, in April 2022, the agency issued a letter to financial institutions requiring them to report current and future cryptocurrency activities.

Along with policy adjustments, FDIC also announced the termination of using "reputational risk" as a bank supervision factor. This move responds to criticisms from the cryptocurrency industry, where many businesses felt they were being prevented from accessing important financial services.

Meanwhile, the Office of the Comptroller of the Currency (OCC), which regulates national banks and federal savings associations, has also withdrawn restrictions on digital assets earlier this month, confirming that cryptocurrency-related activities are permitted in the federal banking system.

FDIC's decision comes in a context where former President Donald Trump shows a more supportive stance towards cryptocurrency compared to the previous Biden administration. In a statement at the White House on March 7, Trump criticized the Biden administration's approach to banking and cryptocurrency, accusing them of pressuring banks to close cryptocurrency business accounts, blocking money transfers from exchanges, and using the government to suppress the entire industry.

Bo Hines, Executive Director of the Presidential Advisory Council on Digital Assets, praised FDIC's move as "another major victory" for the cryptocurrency industry.