Fed Scraps Notification Requirements for Crypto Activities

In a major policy shift, the Federal Reserve announced on Thursday that it will no longer require state-chartered member banks to notify the central bank before engaging in crypto-asset activities.

Previously, banks had to submit advance notice of plans to deal in digital assets. The Fed now says it will simply monitor these activities through its usual supervisory process, removing a major regulatory hurdle.

Dollar Token and Stablecoin Oversight Also Rolled Back

Alongside this move, the Fed also canceled its 2023 guidance that forced banks to obtain formal non-objection letters before offering services tied to dollar-backed tokens or stablecoins. The rollback gives banks more flexibility to experiment with digital dollar services, a growing sector that has faced heavy scrutiny in recent years.

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In coordination with the FDIC and OCC, the Fed also withdrew two joint statements from 2023 that warned banks about crypto-related risks. The agencies say these changes reflect evolving market conditions and a renewed commitment to fostering innovation. While the Fed may issue updated rules in the future, it emphasized that current steps aim to create a more adaptable and innovation-friendly banking environment—especially in the digital asset space.

Kostadin Dimitrov