US Bank Regulators Pull Back Guardrails on Bank Crypto Activities 6a4a48 Technology News

Scrapping that guidance marks the latest move by the Trump istration to strike a more crypto-friendly stance. 515e3w

By Reuters | Updated: 25 April 2025 18:14 IST

US Bank Regulators Pull Back Guardrails on Bank Crypto Activities

Photo Credit: Unsplash/ Ewan Kennedy 2j5q6g

The Fed has urged banks to be vigilant around crypto-related risks

Highlights

The Federal Reserve said it was withdrawing a pair of supervisory letters
The letters asked banks to take regulatory approvals before crypto use
Regulators warned banks to be wary of volatility, liquidity risks

ment

US banking regulators announced on Thursday they were pulling back several documents that urge banks to show caution when dabbling in cryptocurrency and related activities.

The Federal Reserve said it was withdrawing a pair of supervisory letters stipulating that banks should seek advance approval from regulators before engaging in stablecoin activities.

In addition, the Fed ed the Federal Deposit Insurance Corporation and Office of the Comptroller of the Currency in withdrawing a pair of 2023 statements urging banks to be vigilant around crypto-related risks.

Russia to Launch Crypto Exchange for 'Highly Qualified Investors': Report

Under the prior guidance, regulators warned banks to be wary of volatility, legal uncertainty and liquidity risks when considering whether to provide crypto-related services or take on crypto companies as clients.

Scrapping that guidance marks the latest move by the Trump istration to strike a more crypto-friendly stance. In its statement announcing the changes, the Fed said regulators would be looking into whether new guidance to " innovation, including crypto-asset activities, is appropriate."

In March, the OCC was the first US regulator to move to make it easier for banks to engage in crypto activities, similarly moving to scrap guidance adopted under the previous istration urging banks to be cautious in the space.

Malaysia's Prime Minister Meets Binance's Founder to Discuss Web3 Strategy

© Thomson Reuters 2025

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

Comments

For the latest reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.