The post FDIC working on new crypto guidelines, eyes public blockchain use by banks appeared on BitcoinEthereumNews.com.

The Federal Deposit Insurance Corporation (FDIC) is formalizing a more permissive and transparent framework for US banks engaging with crypto, including the use of public, permissionless blockchains. In remarks delivered at the American Bankers Association Washington Summit on April 8, FDIC Acting Chairman Travis Hill addressed the agency’s evolving stance on crypto-related activities. Guidelines for engagement with public blockchains One key area under review involves the interaction between regulated banks and public, permissionless blockchains. Hill acknowledged that while jurisdictions outside the US have permitted banks to use public chains for several years, US banking regulators have maintained a significantly more cautious posture. The FDIC now considers a total prohibition on public blockchain use too restrictive. However, Hill stressed the need for appropriate guardrails to govern such activity. The agency is evaluating existing interagency guidance, including the joint statements issued in January and February 2023, to develop durable standards for the responsible use of public networks. The question of whether public chains can operate in a permissioned mode is also considered. According to Hill, regulators must assess how to define and supervise blockchain configurations that blur the line between open and permissioned environments. FDIC to issue further guidance The FDIC said it intends to release additional guidance addressing specific digital asset use cases. According to Hill, the agency continues to assess open questions related to the scope of permissible crypto-related activities, the supervisory treatment of blockchain-based products, and the risk management expectations for banks operating in this space. The broader objective is to establish a consistent and transparent supervisory framework that enables innovation while ensuring adherence to safety and soundness standards.  Hill recently noted that the agency’s revised guidance represents a foundational shift in how to treat crypto and blockchain technologies within the US banking system. He emphasized that the FDIC…

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Filed under: News - @ April 9, 2025 3:44 am