The Federal Deposit Insurance Corporation issued new guidance for FDIC-supervised institutions engaging or seeking to engage in crypto-related activities, rescinding its 2022 approach and clarifying that prior FDIC approval is not required for permissible activities. The Financial Institution Letter states that institutions may engage in permissible activities involving new and emerging technologies, including crypto-assets and digital assets, provided they adequately manage the associated risks. The FDIC expects to issue further guidance to provide additional clarity on specific crypto-related activities, will continue to engage with the President’s Working Group on Digital Asset Markets, and will work with other banking agencies to replace existing interagency crypto-asset documents with further guidance or regulations.