The Federal Reserve is taking a major step back from monitoring banks’ crypto activities.
In a new press release, the regulator says it is withdrawing four previous statements and letters regarding the Fed’s expectations of banking crypto activities.
“The Federal Reserve Board on Thursday announced the withdrawal of guidance for banks related to their crypto-asset and dollar token activities and related changes to its expectations for these activities.
These actions ensure the Board’s expectations remain aligned with evolving risks and further support innovation in the banking system.”
The Reserve Board is officially withdrawing its expectation of banks to give advance notice of crypto activities. It plans to continue to monitor crypto activities under a “normal supervisory process.”
The Fed is also withdrawing a letter “regarding the supervisory nonobjection process for state member bank engagement in dollar token activities.”
In partnership with the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC), the Federal Reserve is also withdrawing two joint statements regarding US bank crypto activities.
“The Board will work with the agencies to consider whether additional guidance to support innovation, including crypto-asset activities, is appropriate.”
The move follows a trend of regulators taking a relaxed stance against the crypto sector since the reinstatement of the Trump administration.
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