Banks supervised by the US Federal Deposit Insurance Corp. no longer need prior approval to engage in crypto-related activities, undoing a Biden-era policy that sought to minimize risks to banks and consumers.

“FDIC-supervised institutions may engage in permissible activities, including activities involving new and emerging technologies such as cryptoassets and digital assets, provided that they adequately manage the associated risks,” the agency said in a statement.

The FDIC is working with other regulators to walk back interagency guidance issued under the Biden administration, the regulator said. Previous guidance dating from 2022 required banks to let the FDIC assess safety and soundness, consumer protection and financial stability implications.

The Trump administration earlier in March hosted a Crypto Summit to promote the use of digital assets. Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick then shared their priorities, which include asking agencies to remove obstacles that made it difficult for crypto companies to work with the banking sector.

— By Katanga Johnson (Bloomberg News)