Overview

• The Federal Reserve has withdrawn 2022 and 2023 supervisory letters requiring banks to notify regulators before engaging in crypto and stablecoin activities.
• The FDIC, OCC, and Federal Reserve collectively rescinded two 2023 joint statements warning banks about crypto-related risks.
• Banks are now allowed to manage crypto activities internally, with oversight handled through standard supervisory processes.
• Regulators aim to develop updated guidance to balance innovation in digital assets with evolving risk management needs.
• The Federal Reserve’s policy on granting master accounts to crypto-focused banks remains unchanged despite the broader rollback of restrictions.