Key Takeaways:
- The Federal Reserve has rescinded 2022 and 2023 guidance that restricted banks’ involvement in crypto and stablecoin activities.
- Crypto oversight will now fall under the Fed’s standard supervisory framework, removing prior disclosure requirements.
- This policy reversal reflects a broader pro-crypto shift under the Trump administration, aligning with recent SEC regulatory rollbacks.
The U.S. Federal Reserve has reversed its previous restrictive stance on crypto banking by withdrawing key supervisory guidelines issued in 2022 and 2023.
These earlier guidelines required state member banks to notify the Fed before engaging in crypto or stablecoin activities, citing risks to financial stability, consumer protection, and potential for illicit use.
@federalreserve announces the withdrawal of guidance for banks related to their crypto-asset and dollar token activities and related changes to its expectations for these activities: https://t.co/v1MwuswOlE
— Federal Reserve (@federalreserve) April 24, 2025
As of April 24, 2025, such activities will now be regulated under the Fed’s standard supervisory framework without the need for prior disclosure.
The Fed also rescinded joint statements with the FDIC and OCC that had warned banks about risks from partnering with crypto firms, such as fraud and misleading practices.
This marks a significant policy shift under the Trump administration, which has shown greater openness toward digital assets.
The move aligns with other recent deregulatory steps, including the SEC’s earlier decision to eliminate a rule requiring banks to list client-held crypto as liabilities.
Together, these changes signal a broader government trend toward easing restrictions on crypto-related banking and encouraging innovation in the digital asset space.
About The Author
Adam Morris, the co-founder of Crypto Head and a respected crypto expert, offers insightful commentary and analysis on cryptocurrency, NFTs, and the evolving digital landscape.
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