The U.S. Federal Reserve lifted the regulatory restrictions introduced in 2023 and approved a new approach that allows supervised banks to develop innovative financial products, including services related to cryptocurrency assets.
The Federal Reserve Board officially withdrew the rules implemented in 2023 and released a new document regulating the participation of certain banks in innovative areas of activity, including digital assets and blockchain technologies.
The previous regulation effectively placed state-chartered banks under Federal Reserve supervision on the same footing as national banks in terms of permitted operations. As a result, both insured and uninsured banks were restricted from launching new products, including cryptocurrency services, despite growing market and customer demand.
The new policy establishes a separate regulatory framework that allows banks supervised by the Federal Reserve, regardless of whether their deposits are insured, to engage in innovative activities. This opens up opportunities to expand digital asset services, provided banks meet requirements for financial resilience, risk management, and anti-money laundering compliance.
Federal Reserve Vice Chair for Supervision Michelle Bowman noted that modern technologies can improve bank efficiency and the quality of customer service. According to her, the regulator’s task is to ensure the safe implementation of innovations without jeopardizing the stability of the financial system.
The repealed 2023 initiative was adopted amid rising interest among banks in cryptocurrencies and introduced a single, strict regulatory regime for all federally supervised banks. At the same time, the Fed allowed only limited forms of crypto activity, including custodial storage of digital assets. The new approach signals a more flexible stance by the regulator toward the development of cryptocurrency infrastructure within the U.S. banking sector.
In April 2025, the U.S. Federal Reserve repealed key supervisory guidance issued in 2022–2023, significantly easing regulation of banks’ operations with crypto-assets.
