Fed Removes Crypto Notification Requirement for US Banks

The US Federal Reserve has rescinded two supervisory letters that previously required state member banks to notify regulators in advance of cryptocurrency-related activities. The 2022 and 2023 guidelines had been viewed as deterrents to institutional crypto engagement.

Banks may now pursue crypto and stablecoin initiatives without pre-approval, with oversight shifting to routine supervisory channels. "These actions ensure the Board’s expectations remain aligned with evolving risks and further support innovation," stated the Fed in its announcement.

The policy shift reflects growing regulatory acceptance of digital assets as traditional finance institutions increasingly explore blockchain-based solutions. market observers note the change could accelerate institutional adoption of crypto custody, trading, and payment services.