Fed withdraws banking guidance related to crypto-asset activities

Odaily News The Federal Reserve announced the withdrawal of regulatory guidance on banks' crypto assets and US dollar token businesses, and simultaneously updated relevant business expectation standards. This move is intended to ensure that regulatory requirements keep pace with risk evolution and further support innovation in the banking system. The announcement shows that the Federal Reserve has officially rescinded the regulatory letter issued in 2022, which previously required state member banks to file prior notice for proposed or existing crypto asset businesses. After the revocation, the Federal Reserve will no longer require banks to fulfill their reporting obligations, and will instead monitor related activities through regular regulatory procedures.
Also abolished is the 2023 guidance document on the "regulatory no objection" procedure for state member banks to participate in the US dollar token business. In addition, the Federal Reserve and the Federal Deposit Insurance Corporation jointly decided to withdraw from two policy statements jointly issued by federal bank regulators in 2023 on bank crypto asset business and risk exposure. The Office of the Comptroller of the Currency had previously withdrawn from the statement. The Federal Reserve stated that in the future, it will work with other regulators to evaluate whether a new guidance framework is needed to support innovation (including crypto asset business). (Jinshi)