The FDIC has withdrawn previous restrictions and now allows banks to engage with digital assets as long as proper safeguards are implemented.
The policy reversal aligns with the US government's aim to position the country as a leader in the cryptocurrency space.
Under the previous framework, banks had to notify regulators before participating in crypto-related activities, but this requirement has been eliminated.
Banks are now able to integrate cryptocurrency services while maintaining compliance with financial laws and risk management practices.