The US Federal Deposit Insurance Corporation (FDIC) has announced that banks can now engage in cryptocurrency transactions, including buying, selling, and custodying crypto-assets, without needing prior approval. This change, effective from December 21, 2025, rescinds the 2022 prior notification rule, provided that banks have adequate risk management measures in place. This regulatory shift, coordinated with the Federal Reserve and the Office of the Comptroller of the Currency (OCC), is designed to foster innovation within the financial sector. It is expected to enhance the risk-to-reward ratio for institutional investors considering entry into the cryptocurrency markets.