The Federal Deposit Insurance Corporation (FDIC) has issued new guidance allowing banks it supervises to engage in bitcoin and crypto activities without seeking pre-approval. This reverses a controversial policy imposed under the Biden administration.

In a March 28 statement, the FDIC said banks can now participate in crypto-related services like custody and trading if they properly manage the risks. The agency will also work to replace old regulations with updated crypto guidance.

The policy change came in a new Financial Institution Letter that rescinds earlier rules from 2022 requiring banks to get FDIC clearance before handling bitcoin and crypto assets. That red tape frustrated…

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