Fed Withdraws Crypto Guidance for U.S. Banks, Aligning with OCC and FDIC
The Federal Reserve has removed its previous crypto guidance, which required banks to obtain pre-approvals before engaging in crypto activities. This aligns with similar actions from the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corp., putting responsibility on bank managers for crypto-related matters.
Key points include:
- The Fed's decision eliminates four pieces of crypto guidance established between 2022 and 2023.
- The Fed will monitor banks' crypto activities through standard supervisory processes.
- Banks await new congressional legislation to clarify regulations for digital assets in the U.S.
The Fed stated that these changes align expectations with evolving risks and support banking system innovation.