On April 25, the Financial Associated Press reported (Editor: Zhou Ziyi) that on Thursday (April 25), the Federal Reserve announced the withdrawal of several documents urging banks to exercise caution when engaging in cryptocurrency and related activities, while simultaneously updating relevant business expectation standards. This news brought positive developments to the cryptocurrency sector.
The Federal Reserve stated that it is rescinding a regulatory letter issued in 2022, which required state member banks to obtain prior approval from regulators before engaging in cryptocurrency and stablecoin activities; at the same time, the guidance document issued by the Federal Reserve in 2023 regarding the "no objection" procedure for state member banks' participation in dollar token business is also being abolished.
According to previous guidance documents, regulators warned banks to be cautious of volatility, legal uncertainty, and liquidity risks when considering whether to offer cryptocurrency-related services or accept cryptocurrency companies as clients. After the withdrawal, the Federal Reserve will no longer require banks to report related activities but will instead monitor them through regular supervisory processes.
In addition, the Federal Reserve, along with the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC), jointly decided to withdraw two policy statements issued by federal banking regulators in 2023 regarding banks' cryptocurrency business and risk exposure, while urging banks to remain vigilant about risks related to cryptocurrencies.
In its statement announcing these changes, the Federal Reserve also mentioned that regulators will subsequently investigate whether the new guidance supports innovation, including activities related to cryptocurrency assets.
The Federal Reserve's action to cancel guidance documents marks the latest move by the Trump administration to take a more favorable stance toward cryptocurrencies.
It is worth mentioning that in March of this year, the Office of the Comptroller of the Currency was the first U.S. banking regulator to take action to make it easier for banks to engage in cryptocurrency activities, while it also abolished the previous U.S. government's guidelines urging banks to remain cautious in the cryptocurrency field.
As of the deadline for this report on Friday (April 25), Bitcoin had risen by 1.55% to $93,645.
