Crypto Currency Surprise to Banks from the US: Billions of Dollars of Entry Becomes Easier! - Coin Bulletin

With the new regulations planned by the FDIC, US banks will be able to provide crypto custody services and create tokenized deposits without regulatory approval.

The FDIC, the Federal Deposit Insurance Corporation (FDIC), is working on new regulations that will allow banks to expand their activities in the crypto currency field.

According to Barron's, US banks, with the support of the Trump administration, will be able to conduct certain cryptocurrency transactions without prior regulatory approval.

Speaking before the Senate Banking Committee's hearing on the exclusion of crypto customers from banks, Hill shared documents with the public showing that the FDIC had discouraged banks from engaging in crypto partnerships in the past.

Hill stated that "An approach was exhibited which almost made it impossible for banks to engage in activities related to crypto", indicating that these policies will be reviewed.

Banks Opening Up to Crypto Transactions

FDIC, from now on, will create a new roadmap for banks to engage in crypto and blockchain-related activities by adhering to safe and sound financial principles.

However, it has emerged that in the past, banks' demands in this area were constantly delayed, processes were deliberately slowed down, and banks were kept away from crypto transactions with regulatory pressures.

Under the regulation planned by the FDIC, banks will be able to provide crypto asset custody services and create new financial instruments such as "tokenized deposits".

Officials and bank representatives recently came together to discuss the details of the regulation regarding these issues.

This step paves the way for traditional financial institutions to become more integrated into the cryptocurrency market, meaning new opportunities for investors and reduced regulatory uncertainties. However, FDIC's final decisions and legal processes will continue to be followed for the regulations to be finalized.