The US continues to shift its stance on the regulator guidance of digital assets
The regulatory landscape for cryptocurrency in the US is shifting, with two major agencies easing restrictions on digital asset-related activities. The Federal Deposit Insurance Corporation (FDIC) and the Commodity Futures Trading Commission (CFTC) have both taken steps to allow financial institutions and traders greater flexibility in dealing with crypto products.
The FDIC announced that banks under its supervision no longer need prior approval before engaging in crypto-related activities. This reverses a policy from the Biden administration that required institutions to notify regulators before participating in activities such as crypto custody, stablecoin reserves management, and blockchain-based payment systems.
While the FDIC emphasized that banks should still assess risks related to cybersecurity, market fluctuations, and regulatory compliance, the shift signals a more open approach to digital assets.
The CFTC also made a significant move by withdrawing a staff advisory letter that had created uncertainty around digital asset derivatives. Effective immediately, cryptocurrency-based derivatives will be treated like traditional derivatives, removing regulatory ambiguity for firms operating in this space. This change provides more clarity for trading platforms offering futures and options tied to digital assets like Bitcoin and Ethereum.
These policy adjustments reflect the broader shift in the US regulatory environment under the Trump administration, which has expressed support for making the country a global hub for cryptocurrency. Crypto firms are responding by expanding their offerings.
Coinbase recently introduced 24/7 Bitcoin and Ether futures trading, and Kraken strengthened its derivatives market presence through the acquisition of NinjaTrader. Reports also suggest Coinbase is considering acquiring Derebit, a major crypto derivatives exchange.
With regulatory barriers easing, financial institutions and crypto firms now have more room to innovate, potentially leading to increased adoption of digital asset products in the mainstream financial system.
