- FDIC now allows banks to engage in crypto activities without prior regulatory approval.
- U.S. banking regulators plan to withdraw the 2023 Community Reinvestment Act rule update.
- Federal agencies are scaling back DEI programs, including housing initiatives by Fannie Mae.
The Federal Deposit Insurance Corporation (FDIC) has introduced updated guidance for institutions engaging in crypto-related activities. This new directive, issued as Financial Institution Letter (FIL-7-2025), removes prior approval requirements and replaces FIL-16-2022. The announcement aligns with broader regulatory shifts, as major U.S. banking agencies also plan to rescind a 2023 Community Reinvestment Act (CRA) rule.
FDIC Revises Crypto-Related Policies
Under the new guidance, FDIC-supervised institutions can engage in permissible crypto activities without obtaining prior approval. The agency emphasized that financial institutions must effectively manage risks associated with digital assets and emerging technologies. This marks a departure from previous regulatory approaches.
The FDIC clarified that it will continue working with the President’s Working Group on Digital Asset Markets to provide further clarity. Additionally, the agency plans to collaborate with other banking regulators to replace existing interagency documents related to crypto-assets. More regulatory updates are expected in the future.
Reverting to Previous CRA Framework
Meanwhile, FDIC and the Office of the Comptroller of the Currency (OCC) have announced plans to withdraw a revised CRA rule issued in 2023. This decision follows lawsuits from banking industry groups challenging the changes. Regulators now intend to reinstate the prior CRA framework.
One of the CRA’s objectives is to prevent discrimination in extending credit. However, the changes were criticised by the industry as complicated and likely to discourage loan extension. Analysts and some consumer advocates also expressed a similar sentiment by complaining that the changes made were not adequate in enhancing protection of consumers. As for the regulation part, the regulatory bodies stressed their continuity of approach in the future.
Federal Efforts to Remove DEI Programs
In another related development, federal agencies have started reducing DEI policies following executive orders that were made recently. However, the administration has ordered the heads of agencies to cut DEI programs in the government and corporate industries.
During these changes, FHFA demanded the scrapping of obligations by Fannie Mae and Freddie Mac that were meant to help minorities or the underprivileged in acquiring homes. These decisions also refer to the current continuous stance shift in the federal government towards reinforcing and changing DEI policies in every industry.
