• bitcoinBitcoin (BTC) $ 96,913.00 2.89%
  • ethereumEthereum (ETH) $ 1,839.39 2.39%
  • tetherTether (USDT) $ 0.999898 0%
  • xrpXRP (XRP) $ 2.14 2.23%
  • bnbBNB (BNB) $ 606.34 1.61%
  • solanaSolana (SOL) $ 147.79 2.52%
  • usd-coinUSDC (USDC) $ 0.999900 0.01%
  • dogecoinDogecoin (DOGE) $ 0.173410 3.45%
  • cardanoCardano (ADA) $ 0.683867 4.08%
  • tronTRON (TRX) $ 0.245395 0.2%
  • bitcoinBitcoin (BTC) $ 96,913.00 2.89%
  • ethereumEthereum (ETH) $ 1,839.39 2.39%
  • tetherTether (USDT) $ 0.999898 0%
  • xrpXRP (XRP) $ 2.14 2.23%
  • bnbBNB (BNB) $ 606.34 1.61%
  • solanaSolana (SOL) $ 147.79 2.52%
  • usd-coinUSDC (USDC) $ 0.999900 0.01%
  • dogecoinDogecoin (DOGE) $ 0.173410 3.45%
  • cardanoCardano (ADA) $ 0.683867 4.08%
  • tronTRON (TRX) $ 0.245395 0.2%
  • bitcoinBitcoin (BTC) $ 96,913.00 2.89%
  • ethereumEthereum (ETH) $ 1,839.39 2.39%
  • tetherTether (USDT) $ 0.999898 0%
  • xrpXRP (XRP) $ 2.14 2.23%
  • bnbBNB (BNB) $ 606.34 1.61%
  • solanaSolana (SOL) $ 147.79 2.52%
  • usd-coinUSDC (USDC) $ 0.999900 0.01%
  • dogecoinDogecoin (DOGE) $ 0.173410 3.45%
  • cardanoCardano (ADA) $ 0.683867 4.08%
  • tronTRON (TRX) $ 0.245395 0.2%
  • bitcoinBitcoin (BTC) $ 96,913.00 2.89%
  • ethereumEthereum (ETH) $ 1,839.39 2.39%
  • tetherTether (USDT) $ 0.999898 0%
  • xrpXRP (XRP) $ 2.14 2.23%
  • bnbBNB (BNB) $ 606.34 1.61%
  • solanaSolana (SOL) $ 147.79 2.52%
  • usd-coinUSDC (USDC) $ 0.999900 0.01%
  • dogecoinDogecoin (DOGE) $ 0.173410 3.45%
  • cardanoCardano (ADA) $ 0.683867 4.08%
  • tronTRON (TRX) $ 0.245395 0.2%
image-alt-1BTC Dominance: 58.93%
image-alt-2 ETH Dominance: 12.89%
image-alt-3 BTC/ETH Ratio: 26.62%
image-alt-4 Total Market Cap 24h: $2.51T
image-alt-5Volume 24h: $144.96B
image-alt-6 ETH Gas Price: 10.34 Gwei
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Federal Reserve withdraws guidance

Federal Reserve withdraws guidance on crypto activities, signaling regulatory shift for banks

https://icn.live/wp-content/uploads/2025/04/fed-banks.mp3
  • by ICN.live
Leila Al-Khatib Leila Al-Khatib

Federal Reserve withdraws guidance that had restricted banks from engaging in crypto and stablecoin activities.

This major policy change, announced Thursday, marks a turning point in how U.S. regulators treat digital asset markets.

The withdrawal includes the 2022 supervisory letter, which required banks to notify the Fed before engaging in crypto. It also nullifies the 2023 guidance targeting stablecoin operations. This reversal lifts barriers that once created friction between traditional banks and the growing crypto space. Instead of prior notifications, crypto oversight will now be part of the usual supervisory process.

Banks are no longer obligated to pre-clear crypto-related activity. This could lead to greater participation from the financial sector in blockchain ecosystems. With the Federal Reserve withdrawing guidance, institutions can now evaluate opportunities in digital finance with more autonomy.

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A Regulatory Roadblock Removed

The Federal Reserve withdraws guidance in tandem with the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency. Together, they reversed statements that previously warned banks about fraud risks in crypto asset engagement. This collaboration indicates a unified and more open approach to innovation in financial tech.

The Fed’s latest position includes a commitment to evaluate whether further support is needed. Future guidance will aim to strike a balance between fostering innovation and ensuring financial stability. Crypto firms and banking institutions alike see this as a long-awaited green light.

This reversal aligns with broader industry sentiment. Many in the crypto space have long criticized regulators for stifling innovation. Now, the regulatory tide seems to be turning.

Federal Reserve Withdraws Guidance and Welcomes Innovation

Prominent voices like MicroStrategy’s Michael Saylor have applauded the decision. “Banks are now free to begin supporting Bitcoin,” he posted on X. This message resonated with crypto enthusiasts who believe traditional financial institutions play a critical role in mass adoption.

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Industry experts expect this policy shift to unlock new products such as bank-issued stablecoins and custody services for digital assets. Some speculate it could accelerate tokenized finance and make it easier for consumers to access crypto through trusted banks.

While the Federal Reserve withdraws guidance, it hasn’t abandoned its role as overseer. Regulatory clarity is still developing, and banks will need to tread carefully. Transparency, risk management, and compliance are still expected in all crypto dealings.

Still, this move represents a significant shift. It indicates that regulators are beginning to acknowledge the importance of crypto in the financial landscape. And with less friction from oversight, banks may now become key players in the future of digital assets.

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Why did the Federal Reserve withdraw its crypto guidance?

The Federal Reserve withdrew its guidance to allow banks more flexibility in engaging with digital asset activities. The previous rules required banks to notify regulators before engaging in crypto, which many saw as a barrier to innovation. By eliminating that requirement, the Fed is signaling a more supportive stance toward blockchain and digital finance. The change also reflects a broader collaboration with agencies like the FDIC and OCC to reevaluate the regulatory approach. However, it doesn’t mean a total hands-off policy—crypto activities will still be supervised under standard procedures to ensure financial safety.

What does this mean for banks wanting to enter the crypto space?

This move significantly lowers the regulatory hurdles for banks. Previously, they had to go through time-consuming notification processes before starting any crypto activity. Now, they can integrate crypto products and services directly into their offerings, provided they maintain compliance and risk controls. This could lead to banks offering Bitcoin custody, stablecoin issuance, or even crypto trading platforms. It opens the door for traditional finance to work more closely with blockchain technologies and could accelerate mainstream crypto adoption.

How did the crypto community react to the announcement?

The crypto community largely welcomed the decision. Influential figures like Michael Saylor praised the move, highlighting it as a win for innovation and freedom in financial markets. Many see this as a sign that U.S. regulators are finally embracing the potential of crypto assets instead of treating them as threats. The tone of the Fed’s statement was also more collaborative, mentioning the possibility of developing new guidance that supports growth in the sector. The shift is expected to foster deeper trust between crypto firms and traditional institutions.

Does this mean crypto is fully accepted by U.S. regulators now?

Not quite, but it’s a major step forward. The withdrawal of the restrictive guidance shows a willingness to work with the crypto industry rather than against it. Still, there are ongoing concerns about fraud, volatility, and consumer protection. Regulatory bodies will continue to monitor crypto activities, and future guidance is likely. The landscape is evolving, and while this move improves access, it doesn’t remove all oversight. It simply marks a more balanced and innovation-friendly approach going forward.

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