Yesterday the Federal Reserve Board announced the withdrawal of guidance for banks related to their crypto asset and dollar token activities and related changes to its expectations for these activities.
Additionally, the Board has rescinded its 2022 supervisory letter establishing an expectation that state members banks provide advance notification of planned or current crypto asset activities.
What has changed? Banks don’t need to notify the Board about crypto asset activities any longer. Banks will just be monitored through a normal supervisory process instead.
The Board has also rescinded its 2023 supervisory letter regarding the supervisory nonobjection process for state member bank engagement in dollar token activities.
In a final twist, the Board, together with the Federal Deposit Insurance Corporation is joining the Office of the Comptroller of the Currency in withdrawing from two 2023 statements jointly issued by the federal bank regulatory agencies regarding banks’ crypto asset activities and exposures. The Board will now work with these agencies to consider whether additional guidance to support innovation, including crypto asset activities, is appropriate.
Lee Bratcher, President of the Texas Blockchain Council hailed the announcement as a “significant shift in the Federal Reserve Board’s approach to regulating banks’ involvement with crypto and stablecoins.”
He added how “by incorporating digital asset activities into routine supervision, the Board aims to maintain effective oversight while supporting innovation within the banking system. This approach suggests a welcome and balanced perspective that neither stifles technological advancement not compromises financial stability.
See Also:
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Texas Strategic Bitcoin Reserve! | Disruption Banking
Why Are Texas Banks Facing Federal Scrutiny for Crypto Dealings? | Disruption Banking
