Letters on this topic: FIL-16-2022 and FIL-7-2025. It doesn’t take much reading between the lines to identify an apparent shift from a precautionary, pre-notification stance on banks’ crypto-related activities (FIL-16-2022) to a permissions-based, risk-management stance that rescinds the prior notice requirement (FIL-7-2025). In the 2022 letter, the FDIC required banks to notify the agency before engaging in any crypto-related activity and emphasized evolving safety and soundness, consumer protection and financial stability risks. Following, in the 2025 letter, the FDIC affirmed that FDIC-supervised institutions may engage in permissible crypto-related activities without prior FDIC approval, provided risks are adequately managed and activities comply with applicable law. Additionally, in February 2025, the FDIC published 25 “pause letters,” which were sent to banks between October 2018 and January 2025, discussing the FDIC’s concerns with their crypto-related activities. In the context of the release, Acting FDIC Chairman Travis Hill commented about the FDIC’s position evolving to provide a pathway forward for banks by saying, “Looking forward, we are actively reevaluating our supervisory approach to crypto-related activities. This includes replacing Financial Institution Letter (FIL) 16-2022 and providing a pathway for institutions to engage in crypto- and blockchain-related activities while still adhering to safety-and-soundness principles.” Taking a slightly deeper look at the remarkably brief 2025 FIL, the following highlights are noteworthy: • Risk-Based Approach: The letter reiterates that banks must conduct all activities “safely and soundly and consistent with all applicable laws and regulations.” Risk areas called out include market/liquidity, operational and cyber, consumer-protection and AML. • How Permissibility Is Framed: FIL-72025 affirms that activities involving new and emerging technologies — including crypto-assets and digital assets — can be permissible if risks are managed. It references OCC interpretive letters on custody and stablecoin reserves as examples of activities that may be permissible when executed appropriately. • Forward-Looking Coordination: The FIL states the FDIC will work with other banking agencies to replace the 2023 interagency statements on crypto-asset risks and liquidity vulnerabilities with further guidance or regulations and continue engagement with the President’s Working Group on Digital Asset Markets. • Tone: The tone is notably pragmatic and enabling. The accompanying press release quotes Acting Chairman Travis Hill as saying the FDIC is “turning the page on the flawed approach of the past three years.” This signals a desire to provide a clearer path for banks to engage in crypto/blockchain activities under safety-and-soundness standards. Additionally, following on the heels of the FIL in March, Congress generated additional tailwind on the topic by signing the GENIUS Act into law. While the details of the GENIUS Act aren’t being discussed in this release, the Act generally defines and regulates stablecoins that are used for payments or settlements. At the time the Act was signed into law, whitehouse.gov described the Act by saying, “This long-overdue legislation creates the first-ever Federal regulatory system for stablecoins, ensuring their stability and trust through strong reserve requirements.” The Act goes a long way to promote more widespread use of stablecoins throughout the economic system while providing regulatory guardrails that a community bank must be familiar with when considering a crypto-friendly business model. With the apparent change in tone at the regulatory level, the question we hear most frequently is, “How are community banks getting involved with crypto-assets in practice?” While the short answer is that not many are, there are a few emerging topics that community banks 27 NEBRASKA BANKER
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