The FDIC (U.S. bank-deposit regulator) has reversed a tougher 2024 framework for bank mergers, saying it made applications longer, harder and less predictable. The agency rescinded its 2024 Statement of Policy on Bank Merger Transactions and restored its earlier approach, which places greater emphasis on faster decisions and predictability. The Federal Reserve continues to review mergers involving bank holding companies and state-member banks separately, assessing competition, financial strength, community needs and anti-money-laundering controls. It approved 145 M&A applications in 2025, compared with 99 in 2024, while average processing times fell from 101 days to 85 days and median processing times edged down from 58 days to 56 days. An inspector-general review found that median processing times for small community-bank mergers and acquisitions rose about 40% between 2021 and 2024 and recommended improved tracking of delays. The policy shift comes as banks face competition from fintech firms, new payment infrastructure, tokenized deposits and stablecoins (digital tokens designed to maintain a stable value). Banks are experimenting with stablecoins partly to protect deposits, payments and settlement activity from crypto-native and fintech rivals.