#BinanceAlphaAlert Federal Reserve Updates Oversight Approach for Banks Involved in Crypto and Stablecoins

According to Cointelegraph, the U.S. Federal Reserve has announced a major shift in how it supervises banks involved in cryptocurrency and stablecoin activities. In a statement released on April 24, the Federal Reserve’s Board of Governors said it is rescinding its 2022 supervisory letter, which had previously required state member banks to notify the Fed in advance of any crypto-related plans or activities.

With the withdrawal of this guidance, banks’ crypto activities will now fall under the Fed’s standard supervisory process, eliminating the need for additional advance notice.

Additionally, the 2023 supervisory letter—which impacted how state banks could engage in stablecoin-related activities—is also being rescinded. These moves signal the Fed’s intent to streamline oversight and adapt its regulatory approach to keep pace with the rapidly evolving digital asset space.

This is a developing story, and further updates will follow as more information becomes available.