Federal Reserve Eases Crypto Rules for U.S. Banks
The post Federal Reserve Eases Crypto Rules for U.S. Banks appeared on BitcoinEthereumNews.com.
The U.S. Federal Reserve has officially rolled back key rules that once restricted how banks engage with cryptocurrencies and dollar-backed tokens. The move marks a significant step toward easing regulatory pressure and signals growing openness to digital asset innovation within the U.S. banking system. Why Is the Federal Reserve Pulling Back Its Crypto Rules? The FED has withdrawn its 2022 guidlines that required state-chartered banks to notify the Board before offering crypto-related services. Under the new direction, banks no longer need to send advance notices. Instead, the Fed will oversee crypto activities through its usual supervisory processes—just like any other banking service. Stablecoin Restrictions Loosened The central bank also rescinded its 2023 nonobjection letter process for banks planning to engage in dollar token activities, such as issuing or dealing in stablecoins. This means banks can now move forward with such projects without having to wait for formal approval, removing one more layer of regulatory red tape. The Federal Reserve, alongside the Federal Deposit Insurance Corporation (FDIC), has also pulled back from two joint statements issued last year with the Office of the Comptroller of the Currency (OCC). These joint memos had set cautious expectations around crypto involvement for banks. Their removal signals a coordinated shift toward more relaxed oversight across U.S. regulators. What Does the Federal Reserve’s Shift Mean for the Future of Crypto in Banking? While oversight won’t disappear completely, the tone has clearly changed. The Fed stated that it will continue to work with other agencies to explore new rules that better support innovation while keeping the banking sector safe and sound. Vandell Aljarrah, co-founder of Black Swan Capitalist, called out the irony in the timing of the Fed’s move. Just days after being dismissed for his pro-crypto stance, the central bank reversed its position—removing the same policies…
