FPJ News Service mumbai

The US banks are no longer required to notify the regulator in advance of planned or current crypto-asset activities. The withdrawal of these guidelines by the Fed on Thursday comes as the current Donald Trump administration positions itself as supportive of crypto. During his presidential campaign, Trump even described himself as the first Bitcoin President.

The Fed supervisory guidelines had discouraged American banks from engaging in activities involving cryptocurrencies and stablecoins. As a result, the Board will no longer expect banks to provide notification and will instead monitor banks' crypto-asset activities through the normal supervisory process.

The Fed will, however, monitor such activities through the normal supervisory process. These actions ensure the board’s expectations remain aligned with evolving risks and further support innovation in the banking system.

"Finally, the Board, together with the Federal Deposit Insurance Corporation is joining the Office of the Comptroller of the Currency in withdrawing from two 2023 statements jointly issued by the federal bank regulatory agencies regarding banks' crypto-asset activities and exposures. The Board will work with the agencies to consider whether additional guidance to support innovation, including crypto-asset activities, is appropriate, the Fed said.