The Federal Reserve has withdrawn guidance for banks on crypto and stablecoin engagement, rescinding previous supervisory letters. Moving forward, such activities will fall under standard supervisory processes.
In a significant turn of events, the US Federal Reserve has decided to retract its previously established guidelines for banks that partake in crypto asset and stablecoin activities. This decision was articulated in an April 24 announcement by the Board of Governors, which stated, “The Board is rescinding its 2022 supervisory letter establishing an expectation that state member banks provide advance notification of planned or current crypto-asset activities.” So, what does this mean for banks?
From now on, any activities involving cryptocurrencies will be evaluated under the Federal Reserve’s standard supervisory procedures. This implies a shift away from earlier requirements, allowing banks more flexibility when dealing with crypto ventures. The Federal Reserve isn’t stopping there, though. They’ve also withdrawn a supervisory letter from 2023 that dictated how state banks could handle stablecoin operations.
As this situation continues to evolve, updates will be provided to keep stakeholders informed on any further developments regarding the Federal Reserve’s stance on banks and cryptocurrency.
