Crypto Rules Lifted: Banks Gain Freedom

Federal Reserve Ends Crypto Notice Requirement for Banks

• The Federal Reserve will no longer require member banks to provide advanced notice of crypto and stablecoin-related ventures.
• This change aligns with recent actions by the FDIC and the Office of the Comptroller of the Currency.
• In January 2023, agencies discouraged banks from engaging with crypto following FTX’s collapse.
• The previous guidance, which viewed crypto-assets as inconsistent with safe banking practices, is now rescinded.
• President Trump prioritized reversing perceived anti-crypto policies known as “Operation Chokepoint 2.0.”

The Federal Reserve has joined other federal regulators in removing requirements for banks to notify them about crypto ventures, marking a shift from prior guidance issued after FTX’s collapse. This move is part of efforts to reverse previous anti-crypto policies. However, granting master accounts to crypto-focused banks remains unchanged.