On April 25, the Federal Reserve announced the revocation of regulatory guidelines for banks' crypto asset and digital dollar token businesses, simultaneously updating related business expectation standards. This move aims to ensure regulatory requirements keep pace with risk evolution and further support innovation in the banking system. The announcement indicates that the Federal Reserve has officially abolished the regulatory letter issued in 2022, which previously required state member banks to pre-report planned or existing crypto asset businesses. After the revocation, the Federal Reserve will no longer require banks to file reports, instead monitoring related activities through routine regulatory procedures.
Also abolished are the guidance documents from 2023 regarding the "no objection" procedure for state member banks participating in digital dollar token businesses. Additionally, the Federal Reserve and the Federal Deposit Insurance Corporation jointly decided to withdraw from two policy statements about bank crypto asset businesses and risk exposure, which were jointly issued by federal banking regulators in 2023. The Office of the Comptroller of the Currency had previously withdrawn from the statement. The Federal Reserve stated that it will collaborate with other regulatory agencies to assess whether new guidance frameworks supporting innovation (including crypto asset businesses) are needed in the future.
