U.S. banking regulators announced on Thursday that they were retracting several documents. These documents had previously urged banks to be cautious when experimenting with cryptocurrency and related activities.
The Federal Reserve stated it was withdrawing two supervisory letters. These letters stipulated that banks should seek advance approval from regulators before engaging in crypto-asset and stablecoin activities.
Additionally, the Fed joined the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency. Together, they withdrew two 2023 statements urging banks to be vigilant about crypto-related risks.
Previously, regulators had warned banks to be wary of volatility, legal uncertainty, and liquidity risks. This was when banks considered providing crypto-related services or taking on crypto companies as clients.
Scrapping that guidance marks the latest move by the Trump administration to strike a more crypto-friendly stance. In its statement announcing the changes, the Fed said regulators would be looking into whether new guidance to “support innovation, including crypto-asset activities, is appropriate.”
The OCC was the first US regulator to act in March. They moved to make it easier for banks to engage in crypto activities. The OCC similarly moved to scrap guidance adopted under the previous administration urging banks to be cautious in the space.
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