The post Federal Reserve eases crypto oversight for banks, rescinds key provisions appeared on BitcoinEthereumNews.com.

The U.S. Federal Reserve Board has updated its cryptThe U.S. Federal Reserve Board of Governors has revised its bank crypto policy, making it more permissive when dealing with digital currencies. The Fed said it has withdrawn from its 2022 Supervisory Letter requirements that forced banks to give advance notice anytime they engaged in crypto activities. This adjustment reflects the evolving regulatory environment for cryptocurrencies in the United States. “These actions ensure the Board’s expectations remain aligned with evolving risks and further support innovation in the banking system,” the Fed said in the Thursday statement announcing the change. U.S. regulators ease crypto oversight, leaving banks to manage digital asset activities Now, the Federal Reserve joins its fellow U.S. banking regulators in eliminating its previous crypto guidance, including notices that banks should get pre-approvals before they get involved in crypto activity. All three agencies,  including the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corp., have joined in reversing those previous policies, leaving digital asset matters at banks in the hands of their managers and compliance executives. Without guidance, the banking industry awaits new laws from Congress to define how the digital assets industry should operate in the U.S. Per the Press Release shared by the Fed, it has now chosen to do things differently instead of this stringent oversight. Moving forward, the banking regulator said it will only resort to regulating banks’ crypto activities usually. The Fed also confirmed it is backtracking on a 2023 guidance designed for stablecoins. “The Board is also rescinding its 2023 supervisory letter regarding the supervisory nonobjection process for state member bank engagement in dollar token activities,” the press release noted. The OCC had also revised its position and cleared banks to engage in crypto activities. To complement the current shift,…

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Filed under: News - @ April 25, 2025 1:20 am