The Federal Reserve has announced the withdrawal of guidance for banks regarding crypto assets and stablecoins.
Rescinding of Fed Guidance
On April 24, the Federal Reserve announced it would rescind a 2022 supervisory letter establishing expectations for state member banks to provide advance notice of planned or current crypto-asset activities.
New Supervisory Approach
From now on, any crypto-related activities will be monitored through the Federal Reserve’s normal supervisory process, indicating a more integrated approach to risk management in the banking sector.
Further Measures and Information
The Federal Reserve also rescinded a 2023 supervisory letter that affected how state banks could engage in stablecoin activities. This decision will be analyzed in light of emerging risks.
The withdrawal of these guidelines by the Federal Reserve may impact banks' operations in the cryptocurrency sector and facilitate a smoother regulatory process.
