The post US Banks Gain Freedom to Enter Crypto Without Fed Approval appeared on BitcoinEthereumNews.com.

Fed lifts crypto pre-approval rules for banks. Banks can now offer crypto services freely.  The move aligns with the FDIC, OCC policy changes. Before this, the Federal Reserve had enforced restrictions that prohibited banks from participating in cryptocurrency and stablecoin activities without prior consent. This was a dramatic change to the regulatory environment for digital assets in the United States, which came on April 24, 2025. It follows other rescissions by the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) that have also pulled their crypto guidance. Now, banks can supervise these digital asset activities as they would any other banking service on a normal basis. A New Era for Crypto Banking The move from the Federal Reserve also reverses a 2022 supervisory letter that had instructed banks to inform regulators before they engage in crypto business. A similar rescission was also placed on a 2023 letter that imposed similar stablecoin activities. “The Board is rescinding its 2022 supervisory letter establishing an expectation that state member banks provide advance notification of planned or current crypto-asset activities,” the Federal Reserve stated in its announcement. In doing this, it removes a massive obstacle for banks in offering crypto services such as custody, trading, or stablecoin issuance. Previously, banks had to deal with these risks, so they were discouraged from getting into the space. The action is part of a wider effort to bring digital assets to traditional finance. Crypto banks such as Custodia and Kraken Financial have long sought more access to Federal Reserve services, including master accounts, for years. The new policy could enable such institutions to extend their range of amenities. Implications for the Financial Sector The adoption of cryptocurrency by more conventional banks is likely to accelerate as a result of this.…

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Filed under: News - @ April 26, 2025 4:26 am