The U.S. Federal Reserve repealed key supervisory guidance issued in 2022–2023 concerning banks’ activities involving crypto-assets.
The Fed announced the withdrawal of previous instructions for banks related to operations with cryptocurrencies and stablecoins. Specifically, it rescinded a 2022 letter that required state-member banks to notify the Fed about crypto-related activities, as well as a 2023 letter that established a pre-approval process for transactions involving U.S. dollar tokens.
Additionally, in coordination with the Federal Deposit Insurance Corporation (FDIC), the Fed is withdrawing from two joint statements issued in 2023 with the Office of the Comptroller of the Currency (OCC). These statements addressed risks associated with crypto-assets and banks’ exposure to them.
From now on, the Fed will supervise banks’ digital asset activities as part of its standard oversight process, without additional notification or approval procedures. The updated regulatory expectations reflect evolving risks and aim to support innovation within the banking sector.
The Fed also stated its intention to collaborate with other regulators on potentially issuing additional guidance to foster innovation, including work related to crypto. At the same time, it reserves the right to update its approach or develop new recommendations for industry oversight.
Just a month earlier, the FDIC also eased restrictions on banks’ digital asset operations by eliminating the requirement for prior notification of planned crypto-related activities.
