The Federal Reserve Board has announced the withdrawal of specific guidance for banks regarding their activities in the crypto-asset and dollar token sectors. This move represents an adjustment in the expectations for these financial activities, reflecting changing risks and promoting innovation within the banking system.
A 2022 supervisory letter, which required state member banks to notify the Board of their crypto-asset activities, will be rescinded. Consequently, banks will no longer need to provide such notifications, as these activities will now be monitored through the standard supervisory channels.
Further, the Federal Reserve Board is retracting a 2023 supervisory letter related to the supervisory process for state member banks engaging in dollar token operations.
In conjunction with the Federal Deposit Insurance Corporation (FDIC), the Board is withdrawing from two 2023 joint statements with the Office of the Comptroller of the Currency regarding crypto-asset activities and related risks faced by banks. The Board, alongside the agencies, plans to assess whether additional guidance in support of innovation, including crypto-assets, is needed.
The withdrawn documents include the “Joint Statement on Crypto-Asset Risks to Banking Organizations” and the “Joint Statement on Liquidity Risks to Banking Organizations Resulting from Crypto-Asset Market Vulnerabilities.” Additionally, the “SR 22-6 / CA 22-6: Engagement in Crypto-Asset-Related Activities by Federal Reserve-Supervised Banking Organizations” has been rescinded.
