🇺🇸 FED UPDATES POLICY TO SUPPORT BANK INNOVATION

🔸 The Fed has reversed its 2023 policy statement that restricted innovation activities by member banks under Fed supervision.

🔸 The old policy required these banks to only conduct activities similar to those of banks supervised by other federal agencies, thereby limiting certain new products and services.

🔸 The Fed stated that the financial system and the perception of innovative products and services have changed, rendering the 2023 policy no longer appropriate.

🔸 The new policy opens a clearer path for both insured and uninsured banks, as long as they are under Fed supervision, to implement innovative activities.

🔸 The Fed is signaling a shift from a "don't do it" mindset to a "prove you can do it safely" approach. This helps reduce legal uncertainty for banks looking to innovate.