On April 24, 2025, the US Federal Reserve, OCC, and FDIC rescinded restrictions requiring banks to seek prior approval for engaging in crypto-asset and dollar token activities.
This move marks a shift towards principles-based oversight, enabling banks to streamline crypto activities while emphasizing risk management and compliance.
The US Federal Reserve and other agencies have rescinded earlier crypto guidance. Banks are no longer required to seek supervisory approval for crypto initiatives, marking an important policy adjustment.
Federal Reserve, OCC, and FDIC issued new directives on April 24, 2025. Their actions indicate a shift towards principles-based oversight in managing bank links with crypto-assets and dollar tokens.
Financial Institutions to Expand Crypto Custody
Financial sectors anticipate enhanced institutional custody opportunities for crypto-assets. Changes focus on improving bank strategies without new mandates while emphasizing risk controls. Stakeholders note a shift in regulatory attitudes.
Analysts predict increased bank participation in crypto safekeeping after the policy change. New guidance emphasizes compliance with BSA/AML standards and the importance of safety and soundness in banking operations. “As part of our efforts to enhance the regulatory framework, we are excited to remove prior restrictive guidance and promote safe banking practices related to crypto-assets.” – Federal Reserve Press Release
Regulatory Shift Reflects Easing Stance on Crypto
This reversal follows previous requirements for non-objection on crypto activities, reflecting a growing regulatory comfort with crypto investments. Previous initiatives emphasized bank compliance, now evolving to a more flexible approach.
Insights suggest potential growth in bank-crypto interactions given the revised guidance. Experts highlight that this approach could align with global trends favoring crypto integration into regulated financial systems.
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