Fed Crypto Policy Change: Banks Now Permitted to Engage in Digital Asset Activities
The Federal Reserve has rescinded its restrictive 2023 guidance, marking a pivotal shift in U.S. regulatory stance toward cryptocurrencies. State member banks—both insured and uninsured—may now explore crypto services, including stablecoin issuance and digital asset custody, under a revised 2025 framework.
This policy reversal follows the Fed's acknowledgment of matured institutional understanding of crypto markets. Custodia Bank, previously denied a Master Account, could benefit from the updated rules. Analysts caution that the MOVE signals controlled experimentation rather than unconditional approval for crypto banking.