Federal Reserve Withdraws Crypto Rules for Banks, Ending 'Choke Point' Practices
The Federal Reserve will no longer require member banks to provide advance notice for crypto and stablecoin ventures, opting instead to monitor these activities like any other banking operations. This decision aligns with recent actions by the FDIC and the Office of the Comptroller of the Currency, which also clarified that banks can engage in crypto-related activities without explicit regulatory permission. A previous joint guidance issued in January 2023, discouraging banks from engaging with crypto due to safety concerns, has been rescinded. Industry leaders had previously reported difficulties in accessing traditional banking services due to their crypto affiliations. The Fed's announcement marks a shift away from Biden-era policies, although it does not alter the Fed's stance on granting master accounts to crypto-focused banks, which are essential for nationwide service.
