U.S. Regulators Drop Requirement For Banks To Seek Approval On Crypto Services

U.S. banking regulators, including the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC), announced the withdrawal of earlier guidance that urged caution on cryptocurrency activities.

The Federal Reserve has pulled back two supervisory letters that required banks to seek prior approval before engaging in crypto-asset or stablecoin activities. The FDIC and OCC also withdrew joint statements from 2023 that warned banks about risks such as volatility, legal uncertainty, and liquidity when working with crypto firms. Regulators said they will consider if new guidance is needed to support innovation, including in crypto-related areas.

The move is part of a broader shift in U.S. policy toward making it easier for banks to participate in digital asset markets.