On December 17, 2025, the Federal Reserve Board withdrew a 2023 policy statement and issued a new policy statement regarding the treatment of certain Board-supervised banks that facilitates responsible innovation. The updated policy statement provides a pathway for both insured and uninsured state member banks under Board supervision to participate in specific innovative activities.
In 2023, the Board issued a policy statement that restricted Board-supervised state member banks to the same activities allowed for other federal bank regulatory agencies, including considerations for innovative products and services. However, due to changes in the financial system and the Board's understanding of innovative products and service, the policy statement has been withdrawn as it is no longer appropriate.
The new policy reaffirms that insured state member banks generally may engage as principal only in activities permissible for national banks, unless the FDIC determines the activity poses no significant risk to the Deposit Insurance Fund and the bank remains in compliance with capital standards, or the FDIC otherwise authorizes the activity by rule or order. Insured state member banks must seek FDIC approval where no such authority exists. Uninsured state member banks may not engage in activities impermissible for national or insured state banks without Board permission, and the Board will assess such requests based on safety and soundness, financial stability, regulatory oversight, risk management, liquidity and loss-absorbing capacity, and resolvability. The Board will coordinate with the FDIC and OCC as needed to address questions of legal permissibility.
The Fed’s press release can be found here.
The full Policy Statement can be found here.