The Federal Reserve announced it will no longer require member banks to provide prior notice for crypto and stablecoin-related ventures, aligning its approach to digital assets with its standard banking practices. This decision comes after similar actions from the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC), which had also clarified that banks can engage in crypto activities without needing prior regulatory permission.
Previously, in January 2023, following the collapse of FTX, these three agencies had jointly discouraged banks from involving themselves with cryptocurrencies, advising that such actions were likely inconsistent with safe banking practices. However, this guidance has now been rescinded.
Many industry leaders had expressed concerns that the cautious stance of federal regulators limited access to traditional banking services for businesses linked to cryptocurrencies, a situation referred to as “Operation Chokepoint 2.0.” This alleged anti-crypto discrimination became a priority for action under the recent administration, seeking to reverse the effects of the earlier policies.
Despite the relief expressed by many in the crypto community with this latest announcement, some concerns remain. While the Fed has retracted certain rules, it has not yet changed its positions regarding granting master accounts to crypto-focused banks, which are essential for providing comprehensive services nationwide. Institutions like Custodia and Kraken Financial have faced difficulties accessing these accounts, which are necessary for wider customer engagement.
The shift reflects a notable change in the regulatory environment towards crypto banking, indicating a willingness to embrace digital assets more fully. The impact of this policy change is expected to resonate across the industry as banks may now feel more liberated to engage with innovative financial technology.
For more details, you can visit the FDIC and OCC announcements.
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