Overview
- Announced on December 17, 2025, the Federal Reserve withdrew its 2023 'novel activities' guidance that had discouraged bank participation in crypto services.
- The new policy establishes a formal process for supervised banks to seek permission for crypto custody, tokenization, blockchain settlement tools, and stablecoin integrations.
- Both insured and uninsured state member banks can apply, with uninsured banks eligible for broader permissions if they demonstrate strong liquidity, loss‑absorbing capacity, and credible resolution plans.
- Vice Chair for Supervision Michelle Bowman framed the shift as modernization anchored in safety and soundness under a 'same activity, same risks, same regulation' approach.
- Crypto‑focused institutions such as Wyoming SPDI banks, including Custodia, gain a clearer route to apply for previously restricted activities as regulators including the CFTC and OCC advance parallel frameworks.