On April 24, 2025, the Federal Reserve announced the withdrawal of guidelines for banks related to their activities with crypto assets and dollar tokens, along with changes in their expectations for these activities.
The Federal Reserve announced the withdrawal of certain guidelines previously issued for banks regarding their activities with crypto assets and dollar tokens (such as stablecoins). Although the official announcement does not thoroughly detail each withdrawn guideline, it mainly refers to the guidance published between 2022 and 2023, which established strict requirements for oversight, compliance, and reporting for banks participating in activities related to cryptocurrencies, such as custody, issuance, or transactions of crypto assets. These guidelines included, for example, the need for banks to notify regulators before engaging in such activities and to ensure that their operations met risk management standards, anti-money laundering (AML), and consumer protection.
### **Withdrawn Guidelines**
1. **Prior Notification**: The requirement for banks to inform the Federal Reserve before engaging in activities with crypto assets, such as the custody of cryptocurrencies or the issuance of stablecoins, is eliminated.
2. **Specific Compliance Requirements**: Certain guidelines imposing strict controls to mitigate operational, legal, and liquidity risks in activities involving crypto assets are withdrawn.
3. **Operational Restrictions**: Some guidelines limited banks' exposure to crypto assets or required specific regulatory approvals, which will no longer be in effect.
### **Changes in Expectations**
The Federal Reserve has adjusted its expectations for banking activities involving crypto assets, adopting a more flexible approach:
1. **Risk-Based Approach**: Instead of imposing specific rules, the Federal Reserve expects banks to manage the risks associated with crypto assets according to their own internal policies, aligned with general banking regulation principles.
2. **Greater Autonomy**: Banks will have more freedom to innovate in the crypto asset space without the need to comply with previously detailed guidelines, as long as they maintain prudential standards.
3. **Adapted Supervision**: The Federal Reserve will continue to supervise these activities but with a less prescriptive approach, assessing each case based on the size, complexity, and risk profile of each bank.
4. **Promotion of Innovation**: The changes reflect a more open stance towards the integration of crypto assets into the banking system, seeking to balance financial security with the development of emerging technologies.
### **Context**
This change occurs in an environment where U.S. regulators are reevaluating their approach to cryptocurrencies, especially following debates about the regulation of stablecoins and the integration of digital assets into traditional financial services. The withdrawal of these guidelines could facilitate banks' participation in the crypto ecosystem, although the Federal Reserve emphasizes that banks must continue to comply with applicable laws, including those related to AML and consumer protection.
