US Regulators Ease Crypto Restrictions for Banks

The US Federal Reserve, FDIC, and OCC have rescinded supervisory guidelines and joint statements from 2022 and 2023 that restricted banks' involvement with cryptocurrencies and stablecoins. Banks are now permitted to engage in crypto and stablecoin activities without prior notification or formal approval from regulators, with oversight shifting to standard supervisory processes. This change is intended to foster innovation and address concerns that previous guidance was overly restrictive. The crypto industry has welcomed the shift, which led to immediate increases in prices and trading volumes. The move reflects a broader trend toward a more open regulatory stance on digital assets in the US banking sector. Regulators have stated they will continue to evaluate the need for new guidance to balance innovation with financial stability.