The Federal Reserve has withdrawn Four advice related to Crypto-ASET, including those who force banks to inform the Fed of the activities provided for in advance or to receive a non-objection letter. The other two main federal banking regulators, the currency controller office (OCC) and the Federal Deposit Insurance Corporation (FDIC) had already canceled the requirements to obtain authorization.
He followed a letter of the Republican members of the US Chamber of the American Financial Services Committee this month, requesting the withdrawal of the letters. They characterized the process of supervision non-objection as a method for “Stonewall Financial Institutions” and prevent them from engaging with the technology of the great distributed book (DLT). FDIC’s responses to requests for freedom of information, combined with the lack of services launched by banks, largely support this assertion.
Surveillance will now occur through the Normal Fed supervision process. The Federal Reserve Declaration indicates: “The Board of Directors will work with agencies (FDIC, OCS) to examine whether additional advice to support innovation, including crypto-active activities, are appropriate.”
Letters withdrawn
The first letter withdrawn was published in 2022 and required supervised banking organizations on the board of directors to inform the federal reserve before engaging in digital asset activities. The letter 2023, SR 23-8 Established a supervision process that is not objected for members of the State involved in the tokens using the technology of the large distributed book.
The withdrawal also included two joint letters 2023 issued by the Fed, the FDIC and the occurrence which were more edifying in nature. In all honesty, their timing made sense. The crypto accident which followed the collapse in 2022 of the stablecoin algorithmic terra, led to the massive withdrawal of funds to Silvergate Bank, which alarmed the regulators. Shortly after these letters, the Silicon Valley Bank collapsed, which was not linked to the crypto. However, there were claims that the signing bank collapsed at the same time was partly linked to the crypto, a problem that the bank’s managers challenged.
In addition to banking regulators, the CFTC and the SEC also adopted different approaches to the crypto as part of the new Trump administration. Although the SEC takes an extreme position under the Biden administration, it remains to be seen if the pendulum oscillates too far in the other direction. For example, the SEC has washed the hands of the supervision of most memes parts. But some criticisms, including the popular podcaster Joe Rogan, have expressed a shock that the currency pump and the same hairstyle scams remain largely unregulated
