Federal Reserve Withdraws Crypto Guidance

In a significant shift that could transform the banking sector’s interaction with digital assets, the US Federal Reserve announced on April 24, 2025, that it has withdrawn key supervisory guidance concerning cryptocurrency and stablecoin activities.

This move aligns the central bank with the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC), which both rescinded similar guidance earlier in the year.

The Federal Reserve officially rescinded a 2022 supervisory letter requiring state member banks to give advance notice before engaging in crypto-asset activities. It also withdrew a 2023 letter that mandated a supervisory nonobjection for activities involving stablecoins.

Additionally, the Federal Reserve, FDIC, and OCC jointly withdrew two statements from 2023 that had warned banks about the volatility and risks associated with the crypto sector. These statements were part of what critics called “Operation Choke Point 2.0,” a regulatory stance perceived to have restricted banks from the digital asset economy by fostering uncertainty and regulatory overreach.