US Federal Reserve Lifts Restrictions on Bank Crypto Activities

The US Federal Reserve has dismantled regulatory barriers that previously constrained banks from participating in cryptocurrency and stablecoin operations. The central bank revoked its 2022 and 2023 supervisory letters, which mandated prior approval for crypto services and imposed limits on stablecoin issuance.

Effective immediately, crypto-related activities will fall under standard supervisory oversight rather than requiring special clearance. The move signals growing institutional acceptance of digital assets, potentially accelerating mainstream adoption.

Market observers interpret the policy shift as a watershed moment for crypto integration into traditional finance. The decision comes amid increasing demand from regulated financial institutions for clearer digital asset frameworks.