On April 24, 2025, the Federal Reserve rescinded its prior guidance allowing U.S. banks to engage with cryptocurrencies, opening new opportunities for financial institutions.
Rescinding of Restrictions on Bank Activities in the Crypto Sphere
The Federal Reserve announced the withdrawal of prior restrictions on crypto assets for banks, aiming to incorporate these activities into standard supervisory procedures. The Fed's press release states: "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."
Banks Allowed to Support Bitcoin and Ethereum
The updated policy permits banks to engage with major cryptocurrencies like Bitcoin and Ethereum, bolstering institutional investor support and easing access to digital asset services. Institutions can now hold and transfer these assets, reinforcing a trend towards increased crypto adoption among financial institutions.
Experts Predict Rise in Bank Crypto Services
Experts note that similar past actions, such as the OCC’s 2020 guidance, significantly boosted banking engagement in the crypto space. Current changes continue this trend, enhancing transparency and regulatory coherence. A rise in bank-provided crypto services is anticipated, indicating broader crypto integration within U.S. banking operations.
The Federal Reserve's withdrawal of restrictions may lead to significant growth in crypto activity within the banking sector, opening up new horizons for financial institutions and investors.
