Washington, D.C. – April 24, 2025 —
In a notable policy shift, the U.S. Federal Reserve has rolled back previous requirements for banks engaged in cryptocurrency and stablecoin activities, signaling a streamlined approach to oversight in the rapidly evolving digital asset space.
The U.S. Federal Reserve has announced a significant change in its approach to overseeing banks involved in cryptocurrency and stablecoin activities.
In an announcement released on April 24, the Federal Reserve Board said it is rescinding two key supervisory letters issued in 2022 and 2023. These letters had required state-chartered member banks to provide advance notice before engaging in any crypto-asset or stablecoin-related activities.
With this move, crypto-related operations by banks will now fall under the Federal Reserve’s general supervisory framework, eliminating the need for prior notifications. The Fed emphasized that its standard oversight procedures will still apply to ensure these activities remain safe and compliant with regulatory standards.
The decision reflects the Fed’s broader effort to modernize its regulatory framework in response to the fast-paced growth and innovation within the cryptocurrency sector. It also marks a shift from the more cautious, restrictive stance taken during earlier stages of crypto adoption in traditional finance.
While some observers see this as a positive step toward normalizing crypto in the banking system, others note that regulatory clarity remains crucial for institutions navigating this space.
As this is a developing story, updates are expected as the Federal Reserve continues to refine its oversight approach.
