business

FDIC Clears Path for Bank Crypto Activities Without Prior Approval

Published

3 days ago

March 29, 2025

Banks can engage in cryptocurrency and other legally permitted activities without seeking prior regulatory approval, so long as they manage risks appropriately, The Federal Deposit Insurance Corporation announced Friday.

The policy change rescinds a 2022 requirement that mandated FDIC-supervised institutions notify the agency before engaging in crypto-related activities. Under the new guidance, banks can offer services involving digital assets without the agency’s advance permission.

“With today’s action, the FDIC is turning the page on the flawed approach of the past three years,” FDIC Acting Chairman Travis Hill said in a statement. “I expect this to be one of several steps the FDIC will take to lay out a new approach for how banks can engage in crypto and blockchain-related activities in accordance with safety and soundness standards.”

The move aligns with similar actions by the Office of the Comptroller of the Currency, which earlier this month reaffirmed that national banks can engage in certain crypto activities, including custody services and stablecoin transactions.

This regulatory shift marks a stark departure from the Biden administration’s approach to cryptocurrency and banking relationships. Documents released earlier this year through Freedom of Information Act requests showed the FDIC frequently deterred banks from offering crypto-related services, critics claimed.

The previous regulatory stance had drawn criticism from lawmakers who started investigations into what some called “Operation Chokepoint 2.0,” a reference to an Obama-era initiative that targeted certain industries including firearms dealers and payday lenders. Critics claimed the Biden administration had similarly targeted the cryptocurrency industry through banking restrictions.

In its new Financial Institution Letter (FIL-7-2025), the FDIC clarified that “FDIC-supervised institutions may engage in permissible crypto-related activities without receiving prior FDIC approval.”

The reversal follows months of pressure from cryptocurrency advocates and completes a significant pivot in federal banking policy. Industry representatives had accused regulators of using informal pressure tactics, including concerns about “reputational risk,” to discourage banks from serving cryptocurrency businesses.

American Bankers Association President and CEO Rob Nichols praised the decision. “We welcome FDIC’s new guidance allowing supervised institutions to engage in permissible crypto-related activities without receiving prior FDIC approval,” he said in an official statement. “America’s banks are actively evaluating ways to compete safely and responsibly across the financial services ecosystem, and this type of regulatory clarity is critical to enhancing innovation in the space.”

The FDIC emphasized that banks still need to consider various risks associated with crypto activities, including market and liquidity risks, operational and cybersecurity concerns, consumer protection requirements, and anti-money laundering obligations. The agency noted that institutions “should engage with their supervisory team as appropriate” when pursuing such activities.

Friday’s announcement comes as part of a broader effort by the Trump administration to remove hurdles for digital assets. Besides the OCC’s actions, the government is pushing for a crypto reserve, and taking actions to boost the local crypto ecosystem.

While cryptocurrency advocates welcomed the policy reversal, challenges remain for the industry—which, as consequence, means not everyone is excited with this regulatory shift. “Holy shit, the next Wall St. crash is going to make us long for the good ol’ days of the Great Depression,” said Justin Rosario, host of the political podcast “The Opinionated Ogre.”

Others expressed concerns about the abruptness of the change. “FDIC announces robust new requirement to engage in crypto activities: you must pinky swear,” bank advisor and expert Donald F. Billings wrote on LinkedIn.

The FDIC regulates and insures banks that hold trillions of dollars in deposits. Its new stance could potentially unlock significant capital flows into the cryptocurrency sector as banks reassess their ability to serve digital asset companies and offer crypto-related products to customers.

Edited by James Rubin

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business

France’s Public Investment Bank Bpifrance to Invest $27 Million in Crypto

Published

4 days ago

March 28, 2025

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France-based public investment bank Bpifrance announced Thursday plans to invest $27 million (€25 million) directly into tokens and decentralized technologies in an effort to “strengthen the French blockchain ecosystem.”

Announced during a blockchain-focused event in Paris, the bank’s investment seeks to accelerate its “digital asset investment strategy” by bolstering French crypto startups and assisting the local venture capital players in Web3.

“We are convinced of the growing importance that these players will take on in the years to come, and we want to increase French competitiveness and presence in the field of digital assets,” Arnaud Caudoux, Deputy CEO of Bpifrance, said in a Thursday statement.

Bpifrance’s new fund will complement its long-standing financial support mechanisms—like grants, loans, and equity funding—by targeting blockchain-native models with a strong “French footprint.”

DeFi, staking, tokenization, Layer 1–3 protocols, AI-driven tools, and digital ID solutions are among them.

It represents one of the first moves by a major state investment bank to purchase open-market crypto tokens—a “pioneering initiative,” as Bpifrance put it.

Bpifrance will specifically target “smaller, newly-issued tokens” from French projects—assets that have yet to be listed on exchanges.

“The U.S. is really accelerating its own crypto strategy, so this is all the more important,” Caudoux said as cited in a Reuters report, noting the U.S. crypto push under President Donald Trump as a wake-up call.

Since his re-election, Trump has pledged to make the U.S. the “undisputed Bitcoin superpower,” floated plans to mine Bitcoin domestically, and vowed to make the nation the “crypto capital” of the world.

The pro-crypto President’s administration has also rolled back SEC enforcement against crypto firms, drawing blockchain talent and capital toward the U.S. at a time when Europe remains cautious.

In response to developments in the U.S., Bpifrance’s initiative seeks to retain and nurture blockchain talent within France.

Bpifrance is no stranger to crypto—it first backed hardware wallet firm Ledger in 2014 and has since invested in Aleph.im, Morpho, ACINQ, and others.

In a 2023 interview with Decrypt, Bpifrance’s Blockchain & Crypto Lead Ivan de Lastours said the bank was also exploring zero-knowledge proofs, noting their potential to verify authenticity in a world dominated by AI-generated content.

“They may be key to the future of the internet,” de Lastours said.

Walking the line

France’s broader crypto momentum got another boost this week when The Blockchain Group, a France-based tech firm listed on Euronext Paris, announced it had purchased 580 BTC, worth roughly $50.6 million.

While such initiatives show a proactive approach to Web3 innovation in France, it comes at a time when the country’s regulatory bodies are intensifying scrutiny of the crypto sector.

In January, French authorities launched a judicial investigation into Binance, the world’s largest crypto exchange, over allegations of money laundering and tax fraud.

The probe focused on activities between 2019 and 2024, with potential offenses committed in France and the European Union.

In November 2024, the French gambling regulator, ANJ, began probing Polymarket, a crypto-based prediction market platform, to assess its compliance with French gambling laws.

The probe was triggered after a French trader reportedly placed a multi-million-dollar wager on the outcome of the U.S. presidential election, prompting Polymarket to cut off access for users in France, effectively shutting out a significant segment of its audience.

Edited by Sebastian Sinclair

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Bitcoin

GameStop Announces $1.3 Billion Fundraising Plan To Purchase Bitcoin

Published

6 days ago

March 27, 2025

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GameStop Corp. (NYSE: GME) announced today that it intends to raise $1.3 billion through a private offering of convertible senior notes and will use the net proceeds from this offering for general corporate purposes, including the acquisition of Bitcoin. The move comes a day after the company revealed an update to its investment policy, allowing Bitcoin to be used as a treasury reserve asset.

The offering consists of $1.3 billion aggregate principal amount of 0.00% Convertible Senior Notes due in 2030. Additionally, the company plans to grant initial purchasers an option to buy up to $200 million more in notes within a 13-day period from the first issuance date. The notes will be general unsecured obligations and will not bear regular interest or accrete in value. They will mature on April 1, 2030, unless converted, redeemed, or repurchased earlier.

Upon conversion, GameStop will have the option to settle in cash, shares of its Class A common stock, or a combination of both. The initial conversion rate and other terms will be determined at the time of pricing. The company stated that it expects to use the U.S. composite volume-weighted average price of its stock from 1:00 p.m. to 4:00 p.m. Eastern Daylight Time on the pricing date as the reference for the initial conversion price.

GameStop emphasized that neither the notes nor any shares of common stock issuable upon conversion have been or will be registered under the Securities Act of 1933 or any state securities laws. As a result, they may not be offered or sold in the United States without registration or an applicable exemption. The company also stated that there are no assurances that the offering will be completed as described or at all.

This marks a significant financial decision for GameStop as it pivots toward integrating Bitcoin into its corporate strategy. A strategy pioneered by Strategy’s Michael Saylor, who met with GameStop’s CEO Ryan Cohen in person last month, and has definitely appeared to have had an influence on the GameStop’s decision to embrace BTC as a reserve asset.

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Bitcoin

GameStop Approves Adding Bitcoin To Treasury Reserves

Published

7 days ago

March 26, 2025

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GameStop Corp. (NYSE: GME) announced that its board of directors has unanimously approved an update to the company’s investment policy, allowing Bitcoin to be held as a treasury reserve asset. The decision follows a series of engagements between GameStop Chairman and CEO Ryan Cohen and prominent figures like Michael Saylor in the Bitcoin industry.

On February 8, Cohen met with Strategy Chairman and well-known Bitcoin advocate Michael Saylor, sparking speculation that GameStop may be adding BTC to its balance sheet. A couple weeks after, Cohen responded to CoinDesk via a tweet stating “Letter received.” after receiving a letter from Strive Asset Management CEO Matt Cole, which urged GameStop to adopt Bitcoin as a reserve asset.

In its announcement, GameStop noted that its investment policy now permits investments in “certain cryptocurrency assets, including Bitcoin and U.S. dollar-denominated stablecoins.” The company also acknowledged associated risks, including the potential impact of these investments on its financial results and internal financial controls.

The policy update was disclosed alongside the company’s financial results for the fourth quarter and full fiscal year ended February 1, 2025.

For the fourth quarter, GameStop reported net sales of $1.283 billion, a decrease from $1.794 billion in the same period the prior year. Selling, general and administrative (SG&A) expenses fell to $282.5 million, compared to $359.2 million in the fourth quarter of the previous year. Net income for the quarter was $131.3 million, up from $63.1 million a year earlier. Adjusted EBITDA for the quarter was $96.5 million, compared to $88.0 million in the prior year’s fourth quarter.

GameStop also disclosed that it held $4.775 billion in cash, cash equivalents, and marketable securities at the end of the quarter. The company completed its exit from Italy and finalized the wind-down of store operations in Germany during this period.

For the full fiscal year 2024, GameStop reported net sales of $3.823 billion, down from $5.273 billion in fiscal year 2023. SG&A expenses for the year were $1.130 billion, compared to $1.324 billion in the prior year. Net income for the year reached $131.3 million, significantly higher than the $6.7 million reported in fiscal year 2023. Adjusted EBITDA for the full year was $36.1 million, compared to $64.7 million in the previous year.

The company has not yet disclosed how much Bitcoin it plans to purchase or when it will begin acquiring BTC, and CEO Ryan Cohen has not yet commented publicly on the addition of Bitcoin to GameStop’s balance sheet at the time of publishing.