The Federal Deposit Insurance Corporation expects banks in the US to expand their involvement with Crypto under the administration of Donald Trump.
The Agency believes US banks should take advantage of the crypto-friendly nature of the Trump administration to deepen its relationship with the crypto industry.
The FDIC hopes to facilitate this by revising the Bank’s guidelines, allowing banks to engage in certain crypto activities without prior regulatory approval.
The revised guidelines will allow banks to offer custody services and Tokenized deposits.
The initiative by the FDIC looks to bridge the gap between traditional finance and cryptocurrency helping banks offer more investment alternatives to their clients.
The Federal Deposit Insurance Corporation (FDIC) is an independent U.S. government agency that insures Bank Deposits, Supervises Banks, and Manages Bank Failures.
The FDIC is the second government agency to give a green light to the crypto industry after the Securities and Exchange Commission appointed Hester Pierce the leader of the Crypto task force.
The SEC has turned into a Pro crypto Agency following the departure of Gary Gensler last month.
New Crypto Czar spells Out Vision for the Crypto industry
Earlier this week, David Sacks, the U.S. Crypto and AI Czar, held his inaugural press conference to outline the administration’s vision for the cryptocurrency sector.
The freshly appointed Trump cabinet member emphasized the potential of stablecoins to generate substantial demand for U.S. Treasury securities.
He suggested that an increased adoption of stablecoins could lead to trillions of dollars flowing into government bonds.
Mr Sacks also highlighted the administration’s commitment to fostering a favorable regulatory environment for cryptocurrencies, aiming to usher in a “golden age” for the industry.
Finally, he hinted that the Trump administration is indeed considering a Strategic Bitcoin reserve as promised in his campaign.
The administration earlier signed an executive order approving a crypto reserve with no mention of Bitcoin.
This sparked a backlash in the crypto community with allegations of the Ripple Camp lobbying to derail the approval of a Bitcoin Strategic reserve.
The question of a strategic Bitcoin reserve still hangs in the balance with the crypto community dealing with other pressing issues like a market downturn following tariff wars by geo-political powers.
