Federal Reserve Withdraws Crypto Guidance for Banks
The change marks a move toward a more flexible approach as the Board adapts to evolving risks and encourages innovation in the financial system.
Among the reversals is the 2022 supervisory letter that previously required state member banks to submit advance notification for any planned or current crypto-asset activity. With the withdrawal of that letter, banks are no longer expected to provide such notifications. Instead, the Federal Reserve will integrate oversight of crypto-related activities into its standard supervisory processes.
Supervisory Process for Dollar Tokens Also Rolled Back
In a related move, the Fed also rescinded its 2023 guidance requiring a supervisory nonobjection process for banks seeking to engage in dollar token activities. This effectively removes an extra layer of regulatory approval for banks interested in exploring or operating stablecoin-related services.
Federal Agencies Withdraw Joint Crypto Statements
Additionally, the Federal Reserve, in coordination with the Federal Deposit Insurance Corporation (FDIC), is joining the Office of the Comptroller of the Currency (OCC) in formally withdrawing from two joint statements issued in 2023 concerning banks crypto-asset activities and risk exposures.
The Board emphasized that it will continue working with other regulatory bodies to assess whether new guidance is necessary to both support innovation and safeguard the banking system.
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