BREAKING đ¨ The Fed Quietly Rolled Back a Major Anti-Crypto Policy
This one matters more than the headline suggests.
The Federal Reserve has officially withdrawn its 2023 guidance that effectively blocked uninsured banks from gaining Fed membership and engaging in crypto-related activity.
For context, that guidance wasnât just theoretical â it was actively used.
Why this is important:
⢠The 2023 policy was the basis for denying Custodia Bank access to a Federal Reserve master account
⢠It sharply restricted what state-chartered, Fed-supervised banks could do with digital assets
⢠It went further than the rules enforced by other U.S. banking regulators
In practice, it became a gatekeeping tool.
Now, itâs gone.
The Fed says it will replace the guidance with a new framework designed to support âresponsible innovationâ while still keeping banks safe and sound.
That wording matters.
This does not mean crypto banks are suddenly approved or that the doors are wide open. But it does remove a critical regulatory roadblock that was previously used to shut them out entirely.
Itâs a subtle shift â but a meaningful one.
Instead of blanket resistance, the Fed is signaling a move toward supervision and risk management over outright exclusion.
For U.S. crypto infrastructure, thatâs not a victory lap.
But it is a clear change in direction.
And in regulation, direction is everything
