Crypto: Fed Rescinds Bank Guidance

Federal Reserve Eases Crypto Guidance for State Banks

• The Federal Reserve withdrew supervisory guidance on crypto and stablecoin activities for state member banks.
• Previous guidance required banks to notify the Fed before engaging in crypto activities, which is no longer necessary.
• The Fed’s decision aligns with a broader regulatory shift to support innovation in the crypto sector.
• The FDIC and OCC also revoked joint statements from 2023 related to risks in banks’ crypto activities.
• This move is part of dismantling “Operation Choke Point 2.0,” criticized for restricting banking services to crypto firms.

The Federal Reserve has retracted its previous requirement for state member banks to notify or seek approval before engaging in crypto-asset activities, now monitoring these through standard supervision. This change is part of a larger effort by federal regulators, including the FDIC and OCC, to ease restrictions and support innovation in the cryptocurrency sector.