The U.S. Federal Reserve has officially withdrawn previous guidelines that discouraged banks from participating in cryptocurrency and stablecoin-related activities.
In a statement issued on April 24, the Fed announced it is rescinding a 2022 supervisory letter that had required state-chartered member banks to notify the central bank before getting involved with crypto assets.
From now on, any such activity will be evaluated through the Fed’s regular supervisory framework rather than under separate, restrictive protocols.
The central bank also reversed its 2023 guidance that placed limitations on state banks interacting with stablecoins.
Previously, the guidance had raised concerns about the potential risks associated with digital assets — including threats to financial stability, consumer protection, and the soundness of the banking system. The Fed had warned that large-scale adoption of stablecoins could lead to payment system disruptions and destabilizing financial runs. Crypto’s role in illicit finance, such as money laundering and terrorism financing, was also highlighted.
Joint Warnings on Crypto Fraud Also Pulled
In coordination with the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC), the Fed also withdrew two joint statements issued in 2023. These had cautioned banks against working with crypto entities potentially involved in misleading practices or fraud.
The now-withdrawn statements had criticized crypto firms for possibly making deceptive claims that could harm both retail and institutional investors.
This rollback marks the Fed’s first significant policy shift on digital assets under the Trump administration, which has signaled support for fostering crypto innovation in the U.S.
Earlier this year, on January 23, the Securities and Exchange Commission (SEC) also repealed a rule that had forced financial institutions to report crypto holdings as liabilities — a move seen as a step toward encouraging crypto adoption in banking.
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