Fed Joins OCC, FDIC in Lifting Cryptocurrency Warnings for U.S. Banks
Like other US lenders, the Fed has reversed previous guidance for bankers to seek regulatory approval for cryptocurrency transactions.
Jesse Hamilton | Edited by Aoyon Ashraf Updated April 25, 2025, 5:31 PM Published April 24, 2025, 10:38 PM
What you need to know:
- The Federal Reserve has terminated the work of three US banking regulators who had reversed previous cryptocurrency guidance to bankers.
- The Fed said the move was made in part to “support innovation.”
The Federal Reserve has joined other U.S. banking regulators in rescinding its previous guidance on cryptocurrencies, including notices that banks must obtain prior approval before engaging in cryptocurrency activities.
Now, all three agencies, including the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, have collectively repealed those old policies, leaving cryptocurrency issues in the hands of bank managers and compliance officers. Without clear guidance, the banking industry is awaiting new legislation from Congress that will set the rules for how the digital asset market operates in the U.S.
“These actions ensure that the Board's expectations are consistent with changing risks and further support innovation in the banking system,” the Fed said in a statement Thursday announcing the change.
Overseeing the activities of state banks is one of many functions performed by the Fed, which is best known for its work on monetary policy. The agency’s action on Thursday involves rescinding four pieces of guidance on cryptocurrencies signed by the board in 2022 and 2023, highlighting the risks to banks arising from the sector.
Fed officials “will instead oversee banks' crypto-asset activities through the standard supervisory process.”
Read more: FDIC rolls back US crypto banking policy that required pre-approval
