The Federal Reserve has joined fellow US bank regulators in removing cryptographic guidance for the past few years, including a notice that banks should win pre-approval before participating in cryptographic activities.
Now, all three institutions, including the Secretary of Currency and Federal Deposit Insurance, are taking part in reverse these policies, leaving crypto issues in the banks in the hands of managers and compliance executives. Without guidance, the banking industry is waiting for new laws from Congress to define how the digital asset industry should operate in the US
“Through these actions, we will ensure that board expectations are alongside evolving risks and support further innovation in the banking system,” the Fed said in a statement Thursday.
Banking oversight for member banks in the state is one of the multiple roles the Fed performs and is well known for its monetary policy work. The agency’s move on Thursday specifically removes four cryptographic guidance signed by the board in 2022 and 2023, highlighting the risks raised by the sector to banks.
“Instead, we will monitor the bank’s crypto assets activities through the usual supervision process,” a Fed official said.
Read more: FDIC reverses crypto banking policy requiring advance approval