The American federal reserve has taken over the rules that previously made more difficult for banks to work with cryptocurrencies and stablecoins.
In a press release Published by the agency on April 24, the federal reserve said that it would no longer force banks to members of the State to give notice before launching or participating in activities related to the crypto.
Instead, these activities will now be examined as part of the usual banking supervision process. This decision marks a discrepancy in the previous position of the Fed, which called for additional caution due to potential risks linked to digital assets.
The Fed also canceled its guidelines in 2023 which limited the way banks could engage with the stabbed, or “dollars tokens”. In addition, the Fed, alongside the Federal Deposit Insurance Corporation and the Currency Controller’s office, withdrew from two joint declarations made the same year.
These previous warnings had highlighted the risk of fraud, disinformation and volatile silver flows linked to cryptocurrency companies. One of the declarations withdrawn has warned that deposits of cryptocurrency companies can be unpredictable and lead to steep outings, while another has expressed its concerns about the lack of consumer protection, legal clarity and transparency.
Returning from these positions, the Fed seems to open the door to a greater participation of the bank in the crypto while keeping an eye on potential risks thanks to regular monitoring. The agency said it would continue to monitor risks, but the decision should reduce compliance charges and open new doors for the participation of banks in the digital asset sector.
This change in policy follows a wider change in Washington. In January, the Securities and Exchange Commission referred a rule that had forced the banks that hold the crypto to list it as a passive, raising pressure on institutions.
The latest Fed’s decision comes as the Trump administration continues to position itself as pro-Crypto. President Trump has publicly sworn to make the “planet cryptographic capital” in the United States, reporting that more regulatory regulatory changes could be along the way.
