The United States Federal Reserve Board has revised its guidance to banks regarding allowances for engaging in cryptocurrencies and dollar token or stablecoin activities. The Fed said it has rescinded the provisions of its 2022 Supervisory Letter, which mandated advance notices for banks that wanted to engage in crypto activities. This move comes amid the changing crypto regulatory landscape in the United States.
Federal Reserve and New Approach to Crypto
According to the Press Release shared by the Fed, it has now chosen to do things differently instead of this stringent oversight. Moving forward, the banking regulator said it will only resort to regulating banks’ crypto activities usually.
In addition to this, the Fed also confirmed it is backtracking on a 2023 guidance designed for stablecoins.
“The Board is also rescinding its 2023 supervisory letter regarding the supervisory nonobjection process for state member bank engagement in dollar token activities,” the press release noted.
As CoinGape reported earlier, the OCC also revised its position and cleared banks to engage in crypto activities.
This is a developing story, please check back for details!!!
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