The Fed scraps policies that restricted banks from participating in digital assets.
🚨The Fed has officially withdrawn its 2023 supervisory guidance that had restricted banks from participating in the cryptocurrency sector.👇🏻
This move signals a shift in the Fed’s view on risk and financial innovation, as the digital asset market gradually recovers following the FTX collapse.
On December 17, the Federal Reserve Board rescinded the 2023 Policy Statement, which had imposed a strict assumption that state member banks should not engage in “novel” activities, including many crypto-related services.
The Fed replaced it with a more flexible policy statement, reflecting a more open approach to financial innovation.
The Fed acknowledged that the U.S. financial system and its understanding of digital assets and blockchain technology have evolved significantly, prompting an adjustment in supervisory policy.
Under the updated 2025 Policy Statement, state member banks with FDIC insurance remain subject to strict limitations under Section 24 of the Federal Deposit Insurance Act.
State member banks without FDIC insurance may apply for Fed approval to engage in crypto-related activities, with each case reviewed individually based on its specific risk profile.
