In recent years, professionals at Forvis Mazars have observed an increased emphasis from regulatory agencies on emerging technologies and the associated risks for financial institutions, including concerns related to specific crypto activities. Overall, these agencies have adopted a cautious stance, aiming to balance risk management with the need to foster innovation.
To facilitate understanding of crypto-related activities, regulatory bodies have issued interpretive letters and supervisory guidance. A notable update was the requirement for financial institutions to alert their supervisory agency before offering certain crypto asset services, as indicated in recent communications.
Current Status
With the change in administration, a critical development has been the revocation of previous guidance, thereby removing the notification requirements through a joint announcement made in April 2025. The OCC also released Interpretive Letter 1183 (March 2025) and Letter 1184 (May 2025) addressing these changes.
FDIC Guidance
Unlike FIL-16-2022, which previously mandated notification for crypto-related activities, the latest Financial Institution Letter (FIL) clarifies that “FDIC-supervised institutions may engage in permissible crypto-related activities without prior approval.” Institutions should still assess various risks, including market, liquidity, operational, and cybersecurity risks, and ensure they work with their supervisory teams accordingly.
The FDIC is collaborating with other banking agencies to revise the interagency documents from early 2023 related to crypto assets. As detailed in the 2024 Risk Review, the FDIC emphasizes that banks must be aware of the evolving nature of the crypto landscape and the inherent risks, including fraud and operational vulnerabilities.
OCC Insights
The OCC stated it will continue to evaluate activities outlined in Interpretive Letters 1170, 1172, and 1174 during its supervisory processes. All crypto-related activities must adhere to laws and be conducted in a safe and sound manner consistent with established risk management practices.
While the rescinded guidance covered various crypto models and the associated risks, this earlier information remains useful until agencies issue further updates. The National Credit Union Administration has also created a dedicated page for Financial Technology and Digital Assets, offering additional insights for credit unions.
Legislative Developments
There have been no changes to the expectations from the Financial Crimes Enforcement Network (FinCEN) regarding convertible virtual currency, as outlined in the 2019 Guidance on regulations. Current legislative efforts include the GENIUS Act, which focuses on stablecoins and has passed the Senate, pending House approval.
Upcoming Events
For further discussions on relevant issues for financial institutions, join us from September 8 to 12 for the 2025 Regulatory Compliance Conference in Destin/Miramar Beach, Florida. We will cover trending topics in deposit, lending, and compliance risk management!
If you have any questions or need assistance, please contact a professional at Forvis Mazars.
