U.S. Bank Regulators Ease Restrictions on Cryptocurrency Activities
Washington, D.C. — In a significant shift in policy, U.S. banking regulators announced on April 24, 2025, that they would withdraw several documents that advised caution for banks engaging in cryptocurrency and related activities. This decision, communicated by the Federal Reserve, signals a move toward a more permissive regulatory environment for crypto-asset practices among banks.
The Federal Reserve has rescinded two supervisory letters which mandated that banks must obtain prior approval from regulators before participating in crypto-asset or stablecoin activities. Additionally, the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) have joined in this regulatory rollback, withdrawing a pair of statements issued in 2023 that urged banks to remain vigilant about the risks associated with cryptocurrency.
These earlier guidelines highlighted concerns over the volatility, legal uncertainties, and liquidity risks inherent in the crypto market. By retracting this regulatory guidance, the banking regulators have facilitated a more flexible framework for banks considering their involvement in crypto-related services or partnerships with cryptocurrency firms.
This latest regulatory change aligns with a broader trend among regulators in the Trump administration’s era, which appears to promote a more crypto-friendly stance. The Federal Reserve noted its intention to explore if new guidance is necessary to "support innovation”—a move that indicates a shift toward fostering the growth of the cryptocurrency landscape.
The OCC had previously taken steps to ease restrictions in the crypto sector, being the first U.S. regulator to advocate for a less cautious approach by eliminating guidance that advised banks to exercise caution in their crypto-related initiatives.
As the regulatory framework around cryptocurrency continues to evolve, these changes could have significant implications for the financial sector. The easing of restrictions may encourage banks to expand their offerings and partnerships involving cryptocurrency, potentially leading to increased adoption and integration of digital assets within the traditional banking system.
Reporting by Pete Schroeder; edited by Chris Reese and Deepa Babington.
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