The U.S. Federal Reserve has officially rolled back key rules that once restricted how banks engage with cryptocurrencies and dollar-backed tokens. The move marks a significant step toward easing regulatory pressure and signals growing openness to digital asset innovation within the U.S. banking system.
Why Is the Federal Reserve Pulling Back Its Crypto Rules?
The FED has withdrawn its 2022 guidlines that required state-chartered banks to notify the Board before offering crypto-related services. Under the new direction, banks no longer need to send advance notices. Instead, the Fed will oversee crypto activities through its usual supervisory processes—just like any other banking service.
Stablecoin Restrictions Loosened
The central bank also rescinded its 2023 nonobjection letter process for banks planning to engage in dollar token activities, such as issuing or dealing in stablecoins. This means banks can now move forward with such projects without having to wait for formal approval, removing one more layer of regulatory red tape.
The Federal Reserve, alongside the Federal Deposit Insurance Corporation (FDIC), has also pulled back from two joint statements issued last year with the Office of the Comptroller of the Currency (OCC). These joint memos had set cautious expectations around crypto involvement for banks. Their removal signals a coordinated shift toward more relaxed oversight across U.S. regulators.
What Does the Federal Reserve’s Shift Mean for the Future of Crypto in Banking?
While oversight won’t disappear completely, the tone has clearly changed. The Fed stated that it will continue to work with other agencies to explore new rules that better support innovation while keeping the banking sector safe and sound.
Vandell Aljarrah, co-founder of Black Swan Capitalist, called out the irony in the timing of the Fed’s move. Just days after being dismissed for his pro-crypto stance, the central bank reversed its position—removing the same policies he had spoken against.
“It’s validating to see the Fed now encouraging the very innovation they once blocked,” he said.
This change may open the door for banks to step more confidently into the crypto space—especially in the growing world of dollar tokens and stablecoins. Whether this marks the start of a broader shift in U.S. crypto regulation remains to be seen, but the door is certainly opening wider.
The Federal Reserve’s rollback of crypto guidance marks a shift from caution to cautious openness. By removing approval hurdles, it signals support for innovation and aligns with FDIC and OCC moves—making crypto more accessible for U.S. banks.
Not directly—but the signs point in that direction. By removing the requirement for banks to seek formal nonobjection letters before engaging in dollar token activities, the Federal Reserve has eased the path for stablecoin involvement. While it hasn’t officially endorsed stablecoins, this policy shift shows a more open attitude toward their use in the banking system.
It means fewer barriers and more flexibility. Banks no longer need to go through extra approval processes to offer crypto or stablecoin services. With the Federal Reserve shifting to standard supervision, banks can now explore crypto opportunities more confidently and at a faster pace—without waiting for special permissions.
Earn more PRC tokens by sharing this post. Copy and paste the URL below and share to friends, when they click and visit Parrot Coin website you earn: https://parrotcoin.net0
PRC Comment Policy
Your comments MUST BE constructive with vivid and clear suggestion relating to the post.
Your comments MUST NOT be less than 5 words.
Do NOT in any way copy/duplicate or transmit another members comment and paste to earn. Members who indulge themselves copying and duplicating comments, their earnings would be wiped out totally as a warning and Account deactivated if the user continue the act.
Parrot Coin does not pay for exclamatory comments Such as hahaha, nice one, wow, congrats, lmao, lol, etc are strictly forbidden and disallowed. Kindly adhere to this rule.
Constructive REPLY to comments is allowed