On Thursday, the Federal Reserve Board of Governors announced the repeal of previous guidance for banks related to cryptocurrency and stablecoin operations. Supervisory expectations for these activities have also been revised.

According to the official statement, these changes aim to adapt regulation to emerging risks and foster innovation in the banking sector.

Key Changes

• Repeal of 2022 Supervisory Letter:
  Banks affiliated with the Federal Reserve are no longer required to notify regulators about plans to engage with crypto assets.

• Repeal of 2023 Stablecoin Operations Order:
  Banks are no longer required to obtain prior approval for conducting stablecoin-related operations.

• Standard Oversight Process:
  Crypto and stablecoin activities will now be supervised through the regular regulatory process without the need for pre-approval.

• Withdrawal from 2023 Joint Statements:
  The Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) have exited their joint statements, which previously outlined risks associated with crypto assets and provided preliminary guidance to banks.

Future Regulatory Approach

The Federal Reserve plans to continue collaborating with other regulatory agencies to assess whether new guidance on cryptocurrency activities is necessary.

This move follows similar actions by the Office of the Comptroller of the Currency (OCC), which previously lifted restrictions on banks’ involvement with digital assets.

Background: "Operation Chokepoint 2.0"

Representatives from the crypto industry had previously reported barriers to accessing banking services due to their association with digital assets — a situation that led to the term "Operation Chokepoint 2.0".

Positive Signals for the Crypto Market

The Federal Reserve’s decision is another positive development for the crypto sector under the Trump administration.

Other recent supportive moves include:

• Department of Justice (DOJ):
  In April, the DOJ announced it would cease criminal prosecutions of crypto exchanges, developers, and users accused of regulatory violations.

• National Cryptocurrency Enforcement Team (NCET):
  The NCET has been disbanded.

• Securities and Exchange Commission (SEC):
  In February, the SEC reduced the size of its cryptocurrency enforcement division.

• Commodity Futures Trading Commission (CFTC):
  In January, the CFTC downsized its digital asset working groups.

Conclusion

All these developments signal a softening regulatory stance toward the digital asset industry, encouraging further growth and innovation in the U.S. crypto market.

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