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FDIC says banks can engage in crypto activities without prior approval

The Federal Deposit Insurance Corp said on Friday that institutions supervised by the agency do not need to get prior approval for permissible crypto-related activities.
The Federal Deposit Insurance Corporation (FDIC) has clarified that banks under its supervision can engage in certain cryptocurrency-related activities without needing prior approval, as long as these activities are conducted safely and soundly. This includes providing custody services for crypto assets, engaging in stablecoin transactions, and participating in blockchain and distributed ledger technology. However, banks must still adhere to existing regulations and ensure they manage risks appropriately. The FDIC emphasized that while banks can proceed with these activities, they must notify the FDIC of their intentions and maintain robust risk management practices. This guidance aims to balance innovation with the stability and security of the banking system, reflecting a cautious approach to the integration of cryptocurrencies into traditional banking operations.

Read the Full Reuters Article at:
[ https://www.msn.com/en-us/money/other/fdic-says-banks-can-engage-in-crypto-activities-without-prior-approval/ar-AA1BRobh ]