Federal Reserve, FDIC Pull Statements on Crypto

By Kelly CloonanThe Federal Reserve Board and the Federal Deposit Insurance Corp. have withdrawn several statements regarding banks' crypto-related activities in an effort to support innovation and clarify current policies.Two joint statements from 2023 on risks and liquidity risks regarding banks' crypto-related activities were pulled on Thursday, the FDIC said. The move aims to clarify that banking organizations may engage in crypto activities so long as they are consistent with current laws and regulations. Banks may also provide products and services to people and firms engaged in crypto-related activities, the FDIC said.Providing more clarity to on banks' crypto activities in the coming weeks and months is being considered, the agencies said.The actions come as the Trump administration looks to change regulations surrounding crypto to bring the asset class further into mainstream finance. The president launched his own crypto currency, $TRUMP, earlier this year.The Fed rescinded a 2022 supervisory letter that set an expectation for state member banks to provide advance notice of planned or current crypto activities. As part of these changes, the Fed will no longer expect banks to provide notice, and will instead monitor banks' crypto activities through the normal supervisory process.A second supervisory letter from 2023 regarding the nonobjection process for state member bank engagement in dollar token activities was also withdrawn by the central bank.The Fed said its actions ensure that its expectations are aligned with evolving risks and support innovation in the banking system.Write to Kelly Cloonan at [email protected]