Main Points :
- Trump has formally nominated Travis Hill as the permanent FDIC Chair, signaling continuity in his pro-crypto regulatory stance.
- Under Hill’s acting leadership, the FDIC rescinded requirements forcing banks to seek prior approval before engaging in crypto activities.
- The SEC has rolled out an agenda proposing crypto-friendly reforms, including safe harbors, broker-dealer rule clarifications, and expanded trading channels for digital assets.
- These regulatory shifts could enable deeper integration of cryptocurrencies with the banking system, potentially opening new revenue models.
- For crypto developers, DeFi projects, token issuers, and financial institutions, the environment may become more permissive—but also demands rigorous risk management.
1. The Trump Nomination: Who Is Travis Hill and Why It Matters
Earlier in October 2025, President Donald Trump officially submitted the nomination of Travis Hill, the current acting Chair of the FDIC, to become the permanent FDIC Chairman for a five-year term.
Hill has already been serving in the acting role since Trump’s inauguration in January 2025. Before that, he was a senior adviser to former FDIC Chair Jelena McWilliams, under Trump’s first term. His nomination comes amid a broader regulatory pivot in Washington that aims to reduce constraints on crypto and blockchain activities in the banking sector.
Observers anticipate that Hill’s confirmation would solidify the regulatory trajectory he has already pursued in his acting capacity: easing restrictions, reinterpreting existing guidance to favor innovation, and aligning FDIC supervision more closely with the administration’s pro-crypto posture.
In summary, Hill’s confirmation would not likely mark a dramatic shift, but rather endorse and entrench ongoing policy changes that are already reshaping how U.S. banks can interact with digital assets.
2. FDIC Under Hill: From Prior Approvals to Permissionless Crypto Activity
One of the most consequential moves during Hill’s tenure as acting Chair has been the reversal of FDIC policy requiring banks to obtain regulatory approval before launching crypto-related services.
2.1 FIL-7-2025: The New Guidance
On March 28, 2025, the FDIC issued FIL-7-2025, a Financial Institution Letter that rescinded the previous FIL-16-2022 requirement for banks to notify the FDIC in advance when planning crypto operations. Under FIL-7-2025, FDIC-supervised institutions may engage in “permissible crypto-related activities without prior approval, so long as risks are adequately managed.
The new guidance states that permissible activities may include:
- Crypto custody services
- Holding stablecoin reserves
- Acting as validator or node operators
- Engaging in settlement functions on blockchain networks
The FDIC also emphasized that it may issue further guidance clarifying which additional crypto activities are acceptable under safety and soundness constraints.
2.2 From “Pause Letters” to Transparency
Earlier, banks interested in offering crypto products often received so-called “pause letters” from the FDIC, signaling supervisory resistance or delays. In February 2025, Hill directed a review of these letters and released 175 documents and correspondence with banks to enhance transparency. He framed that release as a corrective to what he saw as an implicit message that banks “were closed for business” if they touched blockchain.
By rescinding prior-approval requirements and increasing transparency, the FDIC under Hill is signaling that it will treat crypto activity more like conventional banking operations, assuming compliance with safety, soundness, AML, cybersecurity, liquidity, and consumer protection requirements.
However, the FDIC is cautious: it expects banks to manage the usual risk categories, engage with supervisory teams when needed, and act prudently—especially for activities outside the currently enumerated “permissible” list.
3. SEC’s Crypto Agenda: Safe Harbors, Trading Reforms, Broker-Dealer Tweaks
Parallel to the FDIC’s easing, the SEC, under Chair Paul Atkins, has introduced an ambitious regulatory agenda intended to reshape how crypto interacts with securities law.
3.1 Key Components of the SEC Agenda
In September 2025, the SEC published its spring 2025 RegFlex (Regulatory Flexibility) agenda, which includes several crypto-focused rule proposals. Among the most notable elements:
- Safe Harbors / Exemptions: Proposals to carve out exemptions or safe harbor periods for digital asset issuers, easing compliance burdens.
- Exchange Act Amendments: The SEC is exploring modifying the Exchange Act to permit the trading of certain crypto assets on national securities exchanges and alternative trading systems (ATS).
- Broker-Dealer Rules: The agency may revise financial responsibility, recordkeeping, and reporting rules for broker-dealers to better suit crypto business models.
- Custody Rule Changes: Amendments to custody rules to incorporate crypto assets under clearer, more modern frameworks.
- Distributed Ledger / Transfer Agent Reform: Updates to the rules for transfer agents to account for DLT use, thereby improving efficiency in securities processing.
Atkins and the SEC staff have described the agenda as a pivot from Gensler-era enforcement-heavy tactics toward a more innovation-friendly, disclosure-based model.
3.2 Implications and Caveats
If adopted, these proposals could significantly lower the legal friction for crypto firms operating in the U.S. — enabling token issuances, trading, and custody with more regulatory clarity.
However, several caveats remain:
- These are proposals, not final rules. They must pass through public comment periods and internal SEC reviews.
- The SEC Chair’s agenda does not necessarily reflect all Commissioners’ stances or future adjustments.
- Enforcement will still function, especially for fraud, market manipulation, and disclosures. The safe harbor and exemption proposals may come with guardrails.
Additionally, Commissioner Hester Peirce, known for her pro-crypto views, has reaffirmed her willingness to help industry parties tokenizing assets to engage with SEC frameworks.
4. Strategic Implications for Crypto and Blockchain Practitioners
For readers exploring new crypto protocols, revenue models, or enterprise blockchain adoption, the regulatory landscape is shifting rapidly. Below are key implications and considerations:
4.1 Banks as Crypto Enablers, Not Gatekeepers
The FDIC’s relaxed stance effectively allows banks to become crypto service providers—offering custody, stablecoin reserves, or nodal operations—without needing prior clearance. This reduces one major barrier to institutional adoption and may foster hybrid models where banks act as regulated bridges for crypto operations.
Nevertheless, FDIC oversight still applies; banks must maintain risk discipline, and crypto activities remain subordinate to safety and soundness norms.
4.2 Token Issuers: Regulatory Pathways May Open
With SEC signals toward safe harbors, exemptions, and clearer treatment of trading on ATS or exchanges, token issuers may gain more confidence in issuing assets without being immediately classified under onerous securities constraints. That said, any token with strong security-like features is still likely to face scrutiny.
4.3 DeFi and Permissionless Protocols
Projects that lean toward decentralized protocol models may benefit from a more favorable regulatory slope. If the SEC’s rules accommodate noncustodial, open-protocol structures, some of the compliance burden might shift from the protocol itself to interfaces or intermediaries. But enforcement risk—fraud, market manipulation—remains.
4.4 Institutional Players & Revenue Models
- Bank partnerships: Crypto projects might more easily partner with FDIC-insured banks for services like custody, fiat rails, or stablecoin reserves.
- Tokenization of real-world assets: As regulators clarify DLT use in securities, projects tokenizing real assets may find better regulatory footing.
- Compliance-as-a-service: New opportunity zones where projects offer regulatory-compliance tooling or monitoring layers.
- Bridging systems: Banks may serve as regulated bridges connecting on-chain protocols to traditional finance.
4.5 Risk Management Becomes Paramount
The regulatory easing does not remove obligations around AML/KYC, cybersecurity, operational resilience, liquidity risk, and market volatility. Projects and institutions must ensure robust frameworks, or risk enforcement even under friendlier regimes.
5. Recent Developments & Broader Trends
To ground the above in the evolving reality, here is a survey of recent shifts and signals:
- SEC Staff Cuts Due to U.S. Government Shutdown: With Congress failing to pass appropriations, the SEC furloughed over 90% of its workforce, limiting market function and possibly delaying rule adoption.
- SEC Cuts Costs on Market Surveillance: The SEC announced conditional reforms to its Consolidated Audit Trail (CAT) system, cutting costs by $25–27 million, indicating a broader deregulatory orientation.
- Drop of the Kraken Lawsuit: The SEC agreed to dismiss its case against crypto exchange Kraken, a symbolic sign of shifting enforcement posture.
- Senate Overturns IRS DeFi Broker Rule: Congress passed a resolution via the Congressional Review Act to overturn a Biden-era IRS rule that would have broadened “broker” obligations to DeFi actors.
- Proposal for U.S.–UK Crypto Passporting: The outgoing head of New York’s DFS supported mutual market access for crypto firms between the U.S. and U.K., reflecting pressure to standardize global rules.
- SEC Commissioner Peirce Encourages Tokenizers: Speaking at a summit in Singapore, Peirce reiterated that the SEC is open to working with firms seeking to tokenize assets.
Together, these moves underscore that the momentum is toward a softer regulatory environment—at least at the federal level in the U.S.—though execution and consistency remain uncertain.
6. Full English Article (Based on Your Provided Japanese Article + Added Context)
Trump’s Nomination of Travis Hill Signals a Pro-Crypto Shift in U.S. Financial Regulation
Main Points
- President Trump has formally nominated Travis Hill as the permanent FDIC Chair, emphasizing continuity in his pro-crypto agenda.
- Under Hill’s acting direction, the FDIC revoked prior approval mandates that hindered banks from engaging in crypto services.
- The SEC’s 2025 agenda proposes reforms like safe harbors for token issuers, broker-dealer clarifications, and allowing crypto trading on regulated exchanges.
- These changes could bridge the gap between the crypto world and traditional banking, unlocking new opportunities for developers and institutions.
- Yet, compliance and risk control will remain essential in this evolving regulatory landscape.
The Nomination and Its Significance
In early October 2025, President Donald Trump officially submitted the Senate nomination of current acting FDIC Chair Travis Hill to hold the position permanently for a five-year term. While Hill has already been acting in that capacity since Trump’s inauguration, his formal confirmation would embed his regulatory philosophy into one of the most powerful U.S. banking agencies.
Hill’s background is deeply rooted in FDIC operations: in his earlier career, he served as a senior adviser to FDIC Chair Jelena McWilliams during Trump’s first term. Over time, Hill has become known as a vocal advocate for reforming the FDIC’s approach to crypto and blockchain, criticizing what he viewed as excessive conservatism or regulatory inertia.
By nominating him permanently, the administration is signaling that Hill’s agenda is not an interim fluke but a longer-term shift in U.S. banking supervision.
FDIC Policy Under Hill: From Caution to Permissiveness
A hallmark of Hill’s acting tenure has been overturning restrictive norms around crypto banking.
On March 28, 2025, the FDIC issued FIL-7-2025, which rescinded its previous guidance (FIL-16-2022) that required FDIC-supervised banks to notify and obtain approval before embarking on crypto activities. Under this new letter, banks may now engage in permissible crypto-related activities without prior approval, so long as they manage risk prudently.
The FDIC clarified that permissible activities may include custody of crypto assets, holding stablecoin reserves, acting as validator nodes, and engaging in blockchain settlement operations. Importantly, the agency also indicated that further guidance on additional crypto engagements might follow.
This policy reversal seeks to reduce regulatory friction, remove a barrier to innovation, and treat digital asset operations more like standard banking services—while still retaining oversight through safety and soundness expectations.
Hill also spearheaded a transparency initiative. He ordered a review of so-called “pause letters” previously used to delay or block banks’ crypto ambitions. In early 2025, the FDIC released 175 documents showing correspondence between the FDIC and financial institutions, giving greater visibility into earlier resistance. Hill characterized the prior policy environment as sending a message that banks “were closed for business” if they entered blockchain.
In sum: under Hill’s leadership, the FDIC is repositioning itself from gatekeeper to enabler of crypto finance, assuming that institutions act responsibly.
SEC’s Agenda: Toward a Friendlier Regime for Crypto
On the securities regulation front, the SEC under new leadership has rolled out a sweeping agenda to rework how crypto assets are regulated in the U.S.
In September 2025, the SEC unveiled its Spring 2025 RegFlex Agenda, with a suite of proposals centered on digital assets: safe harbor rules, amended broker-dealer obligations, custody reforms, and expanded exchange access for tokens.
Key highlights include:
- Safe Harbors / Exemptions: The SEC may carve out exemptions for token issuers or permit temporary relief, reducing the legal risk associated with launches.
- Exchange Rule Changes: The agency is considering amendments to the Exchange Act to allow token trading on national securities exchanges and alternative trading systems (ATS).
- Broker-Dealer Rule Reform: Proposals are in place to modernize broker-dealer recordkeeping, financial responsibility rules, and reporting obligations for crypto firms.
- Custody Rule Update: The SEC intends to modernize custody regulation to reflect the realities of crypto assets.
- DLT / Transfer Agent Reform: Rules may be adjusted to integrate distributed ledger technology in securities processing (e.g., issuance, transfer registration).
Chair Paul Atkins has framed this agenda as a break from the enforcement-heavy approach of the prior administration. He claims the new direction will support innovation, capital formation, and market efficiency while preserving investor protection.
Commissioner Hester Peirce — often called “Crypto Mom” — has also publicly encouraged crypto developers and firms to engage proactively with the SEC and has expressed support for tokenization efforts.
These proposals, however, are not yet laws. They must pass through public comment periods and review, and not all may survive in full form. Additionally, the agenda reflects the Chairman’s priorities, not necessarily those of the entire Commission.
Strategic Takeaways for Crypto Builders, Investors, and Institutions
What do these regulatory developments mean in practical terms for those building, investing in, or integrating blockchain technology?
Banks Become Active Crypto Infra Providers
With FDIC-regulated banks now able to offer crypto services more freely, these institutions may play active roles as custodians, stablecoin issuers, or settlement nodes. Projects could partner with banks to deliver regulated crypto services to retail or institutional clients.
Clarity for Token Issuers
If SEC reforms materialize, token issuers might find smoother pathways for launching assets, accessing exchanges, or structuring governance without immediate classification as unregistered securities. But the fine line between “security-like” and exempt tokens remains.
DeFi Protocols and Noncustodial Models
Decentralized protocols may benefit from lighter burdens, especially if regulatory attention focuses more on interfaces, bridges, or custodial components rather than pure smart contract layers. That said, oversight and enforcement risk (e.g. for manipulation or fraud) remain.
New Business Models Emerge
- Compliance infrastructure: Tools and services that automate regulatory monitoring, reporting, and auditing may see growth.
- Bridge services: Banks may build interfaces connecting crypto networks to fiat rails, custody systems, or token issuance platforms.
- Tokenized real-world assets: As regulators begin to permit DLT in securities processing, issuance and trading of tokenized assets may gain legitimacy.
Risk & Compliance Imperatives
Regulatory easing does not eliminate obligations. All participants must maintain strong protocols for KYC/AML, cybersecurity, operational resilience, liquidity, and disclosure. Projects or firms that neglect these areas may still face enforcement even under a softer regime.
Broader Trends and Signals in the U.S. Crypto Landscape
- The SEC has furloughed over 90% of staff amid a federal shutdown, which may delay implementation of new rules.
- The agency is cutting its market surveillance costs (e.g. CAT system), another sign of winning back trust from finance.
- The SEC dropped its case against Kraken, a move celebrated in the crypto community as a positive shift in regulatory posture.
- Congress overturned the IRS’s “DeFi broker” rule, reflecting political momentum for deregulation.
- Some officials are advocating for cross-border regulatory alignment (e.g. U.S.–UK crypto passporting).
- Commissioner Peirce’s public encouragement for collaboration signals that regulators may be more accessible to innovators.
These shifts indicate momentum toward a lighter but structured regulatory regime, with greater openness to innovation—though the pace and shape of reform remain uncertain.
Conclusion and Outlook
President Trump’s formal nomination of Travis Hill as FDIC Chair, combined with the SEC’s reform agenda, highlights a turning point in U.S. digital asset policy. Under Hill’s leadership, the FDIC has already reversed restrictive guidance, allowing banks to engage in certain crypto operations without prior approval. Meanwhile, the SEC’s proposed reforms open new legal pathways for token issuance, custody, and trading.
For the crypto community—builders, token issuers, DeFi projects, institutional entrants—this transition offers both opportunity and caution. Lower regulatory friction means more latitude to innovate, partner with banks, or scale services. But the underlying demands for compliance, risk control, and transparency remain. The next months and years will likely see intense public comment periods, legal refinements, and perhaps pushback from skeptics.
In sum, the U.S. is entering a more permissive, yet still supervised, era for crypto. To thrive, proactive participants should design for compliance, anticipate evolving rules, and remain agile as the regulatory infrastructure is rewired.
