Federal Reserve Rescinds Banking Guidelines in Regulatory Pro-crypto Shift AllinCrypto April 25, 2025
The Federal Reserve has withdrawn multiple cryptocurrency guidelines as part of a continued regulatory shift after the swearing in of SEC Chair Paul Atkins.
On April 24, the SEC withdrew supervisory guidance on cryptocurrencies, including stablecoins. The guidelines were related to banking activity reports and dollar tokens.
The withdrawn guidances give banks greater maneuverability when it comes to crypto and stablecoins, making it easier for banks to enter and issue crypto services.
Federal Reserve withdraws crypto notices, gives banks digital asset adoption paths
The Federal Reserve has withdrawn a 2022 supervisory notice that required banks to notify the FED before committing to any crypto-related activities. A 2023 notice on dollar tokens, or stablecoins, was also withdrawn.
Such notices slowed the ability of banks to utilize cryptocurrencies. With the notices rescinded, banking groups will have a much easier time when it comes to crypto adoption.
The Federal Reserve aims to make it possible for banks to use crypto with clear regulatory rules laid out on what they can and can not do. A streamlined path will contribute to better adoption methods for financial institutions.
From the Federal Reserve:
“These updates are part of our efforts to enhance clarity and consistency in the regulation of crypto-asset activities across the federal banking agencies.”
Warnings of crypto volatility and operational risks were also rescinded as part of an effort between the Federal Reserve, OCC, and FDIC.
The withdrawn notices were part of Operation Chokepoint 2.0, a mission that aimed to stop banks from utilizing cryptocurrencies.
With such notices resigned, banks will not have to report to regulatory overseers to gain approval in using cryptocurrency assets. Instead, crypto usage will be monitored traditionally under existing regulations for TradFi assets.
Regulatory rollback part of pro-crypto US plans
The current regulatory rollback on previous crypto restrictions is part of the Trump administration’s plans to make the US the crypto capital of the world.
In 2025, new regulations are set to be introduced to make it easier for institutions to adopt and offer cryptocurrency services as if they were traditional assets.
Paul Atkins, the new SEC chair, is set to make regulatory changes to make crypto adoption straightforward and less daunting for companies in the US.
The post Federal Reserve Rescinds Banking Guidelines in Regulatory Pro-crypto Shift first appeared on AllinCrypto.
