The Federal Reserve announced this week that it is lifting restrictions on banks' cryptocurrency activities, marking a significant victory for the cryptocurrency industry. With regulators moving towards standardized oversight, banks no longer need Federal Reserve approval to operate stablecoins, representing an important milestone for innovation in cryptocurrency.
The Federal Reserve Committee stated on Thursday that it has withdrawn guidance related to banks' crypto asset and stablecoin activities, and updated expectations for these activities. Part of this policy change involves rescinding a regulatory letter issued in 2022 that required member banks to provide advance notice of any planned crypto asset activities.