In a significant policy shift, the Federal Deposit Insurance Corporation (FDIC) has announced that U.S. banks can now engage in cryptocurrency activities without requiring prior approval. This move rescinds previous guidelines that imposed strict regulations and reflects a new approach by the FDIC toward banks and crypto. The regulatory body aims to eliminate the focus on reputational risk in bank supervision, a change driven by both a new regulatory framework and criticism from the crypto industry. This easing of restrictions has been welcomed by many in the financial sector, signaling a potential shift towards greater integration of digital assets within traditional banking systems.