Overview
- The Federal Reserve withdrew its 2023 policy that constrained state member banks’ crypto activities and issued new guidance enabling applications for custody, tokenization, blockchain settlement tools and stablecoin integrations.
- Both insured and uninsured state member banks may apply, with uninsured institutions required to demonstrate strong liquidity, loss‑absorbing capacity and credible resolution plans before receiving approvals.
- The prior framework was cited in denials of access to Fed services for crypto‑focused banks such as Custodia, whose CEO welcomed the reversal as opening a potential route to membership and payment system access.
- Vice Chair for Supervision Michelle Bowman backed the move as facilitating responsible innovation, while Governor Michael Barr dissented, warning of regulatory arbitrage and an uneven competitive field.
- Coverage notes aligned steps by the FDIC, OCC, CFTC and SEC toward clearer oversight, though experts stress that actual approvals and supervisory execution will determine how quickly bank crypto services expand.