BIG NEWS: FDIC Reverses Course on Crypto, Opening the Floodgates for Bank Digital Assets…

Well, would ya look at that, the FDIC just quietly nuked its own anti-crypto guidance and told banks, “You know what? Go for it.” After three years of treating crypto like it was radioactive, the regulator finally decided that maybe—just maybe—permissionless money and permissioned institutions can coexist without the financial system melting into a puddle.

(Source: Giphy) 

In short, the new move states that banks no longer need to grovel for the FDIC’s permission before engaging in crypto-related activities. That includes holding digital assets, partnering with crypto companies, or doing the basic sh^t Cash App and Venmo have been doing for years.

Meaning, now the FDIC’s about-face is just the latest in a string of crypto glow-ups courtesy of the Trump administration’s second term, where crypto isn’t just tolerated—it’s treated like the future of American finance. Acting FDIC Chair Travis Hill didn’t even try to hide it. “We’re turning the page on the flawed approach of the past three years,” Translation: Somebody find Gary Gensler and get that man some milk. 

(Source: Axios) 

For instance, back in January 2023, the Fed, the FDIC, and the OCC teamed up like the Justice League of No Fun and issued a “joint statement” that basically scared every bank within a three-block radius of crypto into full retreat. That move came after the industry’s 2022 meltdown (RIP Terra, FTX, and whatever that Do Kwon fever dream was), and while it wasn’t an outright ban, it may as well have been. Banks had to ask for permission to do anything even remotely blockchain-adjacent. Spoiler: They never got it. 

That’s not paranoia either. That’s Coinbase dropping FOIA  lawsuits and getting internal emails confirming it, levels of “yeah, we see what you did there.” But now, it’s a whole new vibe regarding regulatory stances. In fact, just recently, the OCC dropped its own crypto love letter, saying national banks can engage in asset custody, stablecoin activities, and even run validator nodes—so long as they have “strong risk management controls.” Which is code for: “Just don’t be stupid.” The Fed hasn’t issued an update yet, but Powell recently hinted that they’re “taking a fresh look”. 

(Source: PYMTS) 

Meanwhile, Coinbase has been busy lobbying like it’s finals week at Wharton, pushing for more regulatory clarity and friendlier conditions for banks to get in on the crypto action. Which obviously, appears to be working. And it’s becoming evident that this new arena is unlocking real-world implications—for banks, for crypto firms, and for the broader financial ecosystem that’s been stuck in limbo for years. 

For more context on how bigly this is, banks can now offer crypto custody services without needing to file paperwork that disappears into a regulatory black hole. Additionally, they can settle transactions between crypto firms without a compliance team having a collective aneurysm. Oh, and they can actually trade digital assets on their own books, assuming they know how to manage risk (let's hope so). 

(Source: Giphy) 

So yeah, bottom line, institutions have officially received the green light to build on-ramps, off-ramps, and everything in between. It means the next time a bank wants to integrate stablecoin transfers into its backend, or custody Ethereum for a client, it won’t need a permission slip signed by three alphabet agencies and blessed by a regulatory priest. 

Now with that said, does this mean your grandma’s community bank will start staking Solana next week? No. But it does mean that the walls are coming down. And when the banks start building again, they’re going to want a piece of everything—from custody to DeFi rails to tokenized treasuries. So get ready, because my spidey senses are tingling—and they’re tingling at a new crypto bull run in the near future. 

(Source: Giphy) 

Of course, I could be 100% wrong on that—and really, I could care less either way since I’m not a crypto mouth breather myself. However, for those of you who are, well, there’s your little piece of good news this weekend. Enjoy it. As always, stay safe and stay frosty, friends! Until next time…

P.S. Lockheed just experienced a major $5 billion defense contract win. Meaning, we’ll be keeping a close eye on defense stocks heading into tomorrow's opening bell as the defense industry continues ramping up their projects. We could see some massive explosions ahead (pun definitely intended) so make sure you’re in the Stocks.News premium club to be the first in the know—before every Joe, Dick, and Harry end up crashing the party… 

Stocks.News does not hold positions in companies mentioned in the article.