Fed Drops its Crypto Guidance for Banks

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The Federal Reserve Board announced on Thursday that it is withdrawing guidance related to banks’ activities in crypto-assets and dollar tokens, along with revising its expectations for these activities.

This move aims to align with evolving risks and further support innovation within the banking system.

The Board is rescinding its 2022 supervisory letter, which required state member banks to provide advance notification of planned or ongoing crypto-asset activities.

Instead of requiring notification, the Board will now monitor these activities through the normal supervisory process.

Additionally, the Board is rescinding its 2023 supervisory letter concerning the requirement for supervisory nonobjection before engaging in dollar token activities.