The United States Federal Reserve Board has revised its crypto regulation guidance to banks regarding allowances for engaging in digital currencies and dollar token or stablecoin activities. The Fed said it has rescinded the provisions of its 2022 Supervisory Letter, which mandated advance notices for banks that wanted to engage in crypto activities. This move comes amid the changing crypto regulatory landscape in the United States.
Federal Reserve and New Approach to Crypto
According to the Press Release shared by the Fed, it has now chosen to do things differently instead of this stringent oversight. Moving forward, the banking regulator said it will only resort to regulating banks’ crypto activities usually.
In addition to this, the Fed also confirmed it is backtracking on a 2023 guidance designed for stablecoins.
“The Board is also rescinding its 2023 supervisory letter regarding the supervisory nonobjection process for state member bank engagement in dollar token activities,” the press release noted.
As CoinGape reported earlier, the OCC also revised its position and cleared banks to engage in crypto activities. To complement the current shift, the apex bank also confirmed that it will work with relevant agencies to determine whether more guidance will be forthcoming.
The ultimate goal is to foster crypto-based innovation to an appropriate level.
Crypto Regulation Taking a Comprehensive Twist
Since President Donald Trump’s inauguration, the Federal Reserve and other agencies have shifted their approach to crypto. The Securities and Exchange Commission (SEC) has dropped some crypto lawsuits to fulfill the President’s campaign promises.
One of the high-profile cases the SEC closed is the Ripple lawsuit. After more than four years of legal battle, the regulator rescinded its appeal on the case, a gesture matched by the payments firm.
Other top crypto exchanges, such as Coinbase Global, Uniswap, and Kraken, have also seen their cases closed. With Paul Atkins now sworn in as Chairman of the commission, he has proclaimed that Bitcoin will be his priority.
Operation Chokepoint 2.0 Out the Window
Over the past year, conversations around Operation Chokepoint 2.0 have filled the crypto ecosystem. Firms operating in the industry have complained of direct efforts to hinder crypto innovation.
Coinbase is filing an active FOIA lawsuit with the FDIC to uncover ways the agency has tried to choke firms. Both the President and Crypto Czar David Sacks have promised to end the industry chokepoint and chart a new course for the US digital assets ecosystem.
The latest move by the Federal Reserve, the OCC, the SEC, and the FDIC confirms that the Operation Chokepoint agenda is over.
The post Breaking: Federal Reserve Withdraws Guidance Restricting Banks from Crypto Activities appeared first on CoinGape.
