Federal Reserve Maintains Anti-Crypto Stance Despite Rescinding Some Rules

The Federal Reserve has drawn criticism for what observers call a deceptive move in its approach to cryptocurrency regulation. While publicly rescinding four pieces of anti-crypto guidance, the central bank quietly retained a key policy that continues to restrict banks’ engagement with digital assets.

The surviving policy, originally issued in January 2023 alongside the Biden administration’s anti-crypto statement, imposes three significant limitations. Banks remain prohibited from holding cryptoassets as principal, effectively barring even minor transactions like gas fee payments. The guidance also maintains a ban on banks issuing stablecoins via permissionless blockchains while showing clear preference for bank-controlled permissioned chains.

This development comes despite other regulators like the OCC and FDIC abandoning similar restrictions, creating regulatory asymmetry in the U.S. financial system. The Fed’s stance continues to frustrate crypto advocates who see it as an outdated approach to blockchain technology.