The Federal Reserve Board has withdrawn its guidance for banks on their crypto-asset and dollar token activities, ensuring the board’s expectations with evolving risks and supporting innovation.
The move rescinds its 2022 supervisory letter establishing an expectation that state member banks must provide advance notification of crypto-asset activities. Now, the board will no longer expect banks to provide notification, and the board will monitor banks’ crypto-asset activities through normal supervision instead. The board also rescinded its 2023 supervisory letter regarding state member bank engagement in dollar token activities.
Officials said the board, in conjunction with the Federal Deposit Insurance Corporation, will join the Office of the Comptroller of the Currency, will withdraw from two statements issued jointly by federal bank regulatory agencies in 2023. Those statements concerned banks’ crypto-asset activities and exposures. The board said it will work with those agencies to determine whether releasing additional guidance that will support innovation, including crypto-asset activities, is warranted.
The American Bankers Association welcomed the move.
“We have long believed banking regulators should avoid implementing rules or guidance that limit banks’ ability to offer digital asset products and services in a safe and sound manner,” Rob Nichols, president and CEO of ABA, said. “Today’s announcement from the Fed and FDIC is a welcome and important step toward achieving that goal and ensuring consumers can access these products and services through their trusted bank relationships.”