The Federal Reserve has eased regulatory restrictions on banks' crypto assets to support financial innovation

Released at 5:30 pm EST, according to official reports, the Federal Reserve Committee announced on Thursday that it would withdraw relevant guidance on bank crypto assets and dollar token activities, and withdraw related adjustments to expectations for these activities. These measures are intended to ensure that the committee's expectations are consistent with evolving risks and further support innovation in the banking system.

The committee will revoke its 2022 supervisory letter, which requires member banks to notify their planned or current crypto asset activities in advance. As a result, the committee will no longer require banks to provide notifications, but will monitor banks' crypto asset activities through normal supervisory processes.

The committee also revoked the 2023 supervisory letter, which involves the regulatory no-objection procedure for state member banks' participation in dollar token activities.

Finally, the committee will work with the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) to revoke two statements jointly issued by federal bank regulators in 2023 on bank crypto asset activities and risk exposure. The committee will work with agencies to consider whether it is necessary to provide more guidance to support innovation, including crypto asset activities.