US Federal Agencies Ease Crypto Restrictions Amid Market Challenges, SEC Closes Crypto.com Investigation

Today in Crypto: Key Developments and Market Trends

The cryptocurrency space is experiencing a series of significant shifts as both regulatory landscape and market conditions continue to evolve. On March 28, two US federal agencies—the Federal Deposit Insurance Corporation (FDIC) and the Commodity Futures Trading Commission (CFTC)—made major announcements that could influence the future of crypto in the financial system. Meanwhile, the NFT market saw a dramatic downturn in the first quarter of 2025, and Crypto.com finally saw its long-running investigation by the US Securities and Exchange Commission (SEC) come to a close.

FDIC and CFTC Relax Crypto Restrictions for Banks and Derivatives

In a major development for the crypto industry, the FDIC announced that it would ease restrictions on institutions under its supervision, including banks, enabling them to engage in crypto-related activities without prior approval. This move came via a letter on March 28, rescinding a previous directive from the Biden administration that required banks to notify the FDIC before engaging in digital asset services.

The FDIC's announcement is a critical shift in how traditional financial institutions interact with the crypto market. As per the agency's guidelines, crypto-related activities include a broad range of services, such as acting as custodians for digital assets, maintaining reserves for stablecoins, issuing cryptocurrencies, and participating in blockchain-based settlement systems, among others.

While banks are now allowed to participate in these activities without advance notice, the FDIC reminded institutions of the associated risks, including market volatility, cybersecurity concerns, and compliance with anti-money laundering regulations. The CFTC also weighed in on the matter, stating that digital asset derivatives would no longer be treated differently from other types of derivatives, further aligning crypto with traditional financial instruments.

For more details on the FDIC’s announcement, you can read the full letter here.

SEC Closes Investigation Into Crypto.com

In a significant update for the popular crypto exchange Crypto.com, the SEC has officially closed its investigation without taking any enforcement action. This marks a turning point for the platform, which had been under scrutiny for months. CEO Kris Marszalek celebrated the decision, posting on social media that the SEC’s actions were part of a broader attempt to "stifle" the crypto industry.

Marszalek claimed that the SEC’s inquiry had caused difficulties for Crypto.com, restricting access to banking, auditors, and investors, which he described as a “calculated attempt to put an end to the industry.” With the investigation now closed, Crypto.com is free to continue operations without any legal hurdles from the SEC. This is a relief for the platform, which has faced increasing regulatory scrutiny in the wake of heightened global concern over crypto exchanges.

For more details on the SEC's decision, visit Crypto.com’s official announcement here.

NFT Market Faces Decline in Q1 2025, But Some Collections Hold Strong

The NFT market has seen a substantial decline in sales during the first quarter of 2025, with total sales plummeting by 63% year-over-year. According to data from CryptoSlam, NFT sales reached only $1.5 billion in Q1 2025, compared to $4.1 billion in Q1 2024. March was particularly challenging, with a staggering 76% drop in sales, from $1.6 billion in 2024 to just $373 million this year.

Despite this widespread downturn, some NFT collections bucked the trend. Pudgy Penguins, Doodles, and Milady Maker stood out with positive sales, showing resilience even as the overall market struggled. Meanwhile, larger collections like CryptoPunks and Bored Ape Yacht Club (BAYC) saw significant drops in sales volume. CryptoPunks' Q1 2025 sales fell by 47%, from $114 million in Q1 2024 to $60 million, while BAYC’s sales dropped by an even steeper 61%, from $78 million to $29.8 million.

The dramatic decline in NFT sales could be a reflection of broader market conditions or shifting investor interests. As the market continues to mature, it remains to be seen how these top-tier collections adapt and evolve in the face of a changing landscape.

For more information on the current state of the NFT market, you can explore detailed reports from CryptoSlam here.

Final Thoughts

As regulatory bodies begin to ease their stance on crypto-related activities, the industry finds itself at a crossroads between innovation and oversight. The FDIC and CFTC’s decisions are major milestones in the ongoing integration of digital assets into traditional financial systems. Simultaneously, the closing of the SEC investigation into Crypto.com signals that the crypto space might see more clarity moving forward, though the recent downturn in the NFT market shows that challenges remain.

With developments continuing to unfold, both the regulatory landscape and market trends in crypto will undoubtedly remain a topic of intense scrutiny in the months to come.